Elon Musk announces plan to turn SpaceX’s ‘Starbase’ into a new Texas city

He changed his own residence in 2021 from California to Texas, where there is no state income tax on individuals.

Updated: December 13, 2024 08:21 AM IST

3 min read

Starbase could become the newest city in Texas’s Rio Grande Valley, further cementing Musk’s growing presence in the state. (AP)

Elon Musk is moving ahead with his plans of turning Starbase — SpaceX’s rocket launch site — in South Texas into an official city.

The SpaceX and Tesla CEO Thursday said that the industrial headquarters will now officially be in the city of Starbase in Texas. He made the announcement in a post on social media platform X.

The rocket company also sent a letter to local officials on Thursday asking for an election to incorporate the area, located at Boca Chica Beach near the Mexican border, according to news agency AP. The letter, signed by Starbase General Manager Kathryn Lueders, explained the need for this step. “To continue growing the workforce necessary to rapidly develop and manufacture Starship, we need the ability to grow Starbase as a community,” she wrote, urging Cameron County to allow the election.

If approved, Starbase could become the newest city in Texas’s Rio Grande Valley.

The latest announcement comes after Musk, in July this year, said he was moving the headquarters of two of his companies – X and SpaceX – to Texas from California. He cited a new gender identity law there as the “last straw.” He also transferred SpaceX’s incorporation from Delaware to Texas this year.

This isn’t the first time Musk has suggested this idea. In 2021, he tweeted about “creating the city of Starbase, Texas,” but this is the first time an official petition has been filed, according to Cameron County Judge Eddie Treviño Jr. The county will now review the petition to ensure it meets legal requirements.

In 2021, Musk moved Tesla’s headquarters from California to Texas as well but said that California would remain its engineering hub. He changed his own residence in 2021 from California to Texas, where there is no state income tax on individuals.

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Starbase is home to over 3,400 SpaceX employees and contractors, according to a local impact report. The site is where SpaceX builds and tests its Starship rockets, which are designed for missions to the Moon and Mars.

Despite its growth, SpaceX has faced criticism from local groups. Earlier this year, the environmental group Save RGV sued the company, claiming it polluted nearby waters. SpaceX called the lawsuit “frivolous” and cited a state review that found no environmental risks.

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