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Elon Musk has confirmed the headquarters of X is moving out of San Francisco. File Photo by Jim Ruymen/UPI
Elon Musk has confirmed the headquarters of X is moving out of San Francisco. File Photo by Jim Ruymen/UPI | License Photo

Aug. 6 (UPI) — Elon Musk has confirmed reports that the headquarters of his social media company X is moving out of San Francisco, citing issues with the California city’s business environment.

“No choice,” he said in response to a post concerning the move on X.

“It is impossible to operate in San Francisco if you’re processing payments,” he offered as reason without elaborating.

The confirmation comes after The New York Times reported Monday that X was shuttering its San Francisco office over the next couple of weeks, with employees to be moved to existing offices in San Jose, Calif.

Citing an email to employees by X chief executive Linda Yaccarino, The Times reported that an new engineering-focused office will also be opened at the social media platform’s Palo Alto, Calif., site.

“This is an important decision that impacts many of you, but it is the right one for our company in the long term,” Yaccarino said in the email.

The office of San Francisco Mayor London Breed told Nexstar in a statement that it was aware of X’s plan to relocate “a small number of employees” from the city.

“Our focus remains on working with and supporting the many businesses that call S.F. home, from global headquarters to leading AI companies and thousands of small businesses,” it said as it defended the city’s reputation for being a tech hub.

“We are building a stronger San Francisco, and together with committed business partners, that progress is well underway.”

Last month, Musk said he was moving the headquarters of not only X but SpaceX from California to Texas in response to the Western state enacting a new law banning schools from outing LGBTQ students to their parents.

Fuming online, Musk, who has previously butted heads with California’s Democratic government, said the law was “the final straw.”

“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 said.

In late 2021, Musk also moved the headquarters for his automobile company, Tesla, from Palo Alto, Calif., to Austin, Texas.

When he announced that move, he cited the lack of affordable housing in Palo Alto and the long commutes of workers.

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