California Assembly Bill 1955 was sitting on Gov. Gavin Newsom’s desk, waiting for his signature, when he got a call from Elon Musk. The bill would prevent schools from requiring parental notification for a child to change their gender identity, and Musk warned Newsom that, if he signed it, it would “force families and companies to leave California to protect their children.”
Newsom signed it into law anyway and, true to Musk’s prophecy, two companies will leave California – his companies, X and SpaceX. This is an increasingly common tactic for Musk and other billionaire CEOs; threaten lawmakers who oppose your preferred policy with consequences – such as moving company headquarters – even when that policy has nothing to do with your company’s mission. And then hope that lawmakers care more about jobs and tax revenue than the democratically preferred legislation. While the threats didn’t work for Musk this time, they are an unfortunately effective tactic. In 2020, Musk threatened to move his Tesla headquarters unless Alameda County rescinded pandemic “lockdowns” and reopened his factories. A few days after that threat, the county submitted to his demand and Tesla reopened. A year later, Musk still moved Tesla’s headquarters to Texas.
