Gov. Gavin Newsom (D-CA) has just delivered yet another blow to California’s economy. With the governor’s signature of a new law on Tuesday, Elon Musk announced in a statement that “because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas.”

He also announced that the headquarters of X would move to Austin, Texas. The legislation in question prohibits schools from notifying parents when a child identifies as transgender. The law has drawn criticism for undermining parental rights and potentially alienating segments of the population.