Inside Elon Musk's Government-Subsidized Texas Headquarters

In a significant shift from the Silicon Valley tech hub, Elon Musk has established a corporate campus in the rural expanse of Texas. Positioned approximately thirty minutes east of Austin, Texas, the landscape transforms from urban congestion to sprawling plains, marking a stark contrast from the bustling city. This new location, situated off a two-lane main highway, is the unlikely new home for Musks ambitious business endeavors, which include his latest corporate headquarters for X, his social media platform.
Recent court filings reveal that a large metallic structure, completed within the last few months, will serve as the operational headquarters for X, while just a short distance away, a prominent logo for Musks infrastructure venture, The Boring Company, adorns another facility. Nearby, the SpaceX facility is rapidly expanding as it manufactures essential equipment for the Starlink satellite internet service. Historically, Musk, recognized as the worlds richest individual and an influential figure during Donald Trumps presidency, had long resided in Silicon Valley. However, his move to Texas reflects both a personal transformation in his political beliefs and a broader trend among technology leaders seeking more favorable business environments.
One of the driving factors behind Musk's relocation is the relatively low cost of land in Texas, combined with a large pool of skilled tech workers emerging from the vibrant Austin job market. Additionally, the local regulatory framework is considerably more accommodating to business development compared to California. Musks decision to leave California gained traction after the state enacted legislation concerning the notification protocols for families regarding students' gender identity changes, a move Musk publicly opposed, particularly given his personal circumstances involving his estranged transgender daughter. His criticism of what he deems the woke mind virusa term he employs to characterize divisive identity politicscoupled with concerns about anti-meritocratic ideologies seems to have propelled him towards Texas, a Republican stronghold and one of the fastest-growing states in the United States.
Besides the corporate cluster near Bastrop, Musk has also established a SpaceX facility in Cameron County, located at the southern tip of Texas, close to the border with Mexico. Interestingly, employees at SpaceX have initiated a petition to create a new town named 'Starbase,' which is slated for a vote in May, further illustrating the ambitious scope of Musk's projects. However, reactions within the Bastrop community to Musks developments remain decidedly mixed. Sylvia Carrillo, the city manager of the burgeoning town of Bastrop, which boasts a population exceeding 12,000 residents, comments, Its almost like we have a split personality. Residents take pride in the prospect of jobs for their children and grandchildren, yet theres a palpable concern that were becoming overwhelmed by an external force and that rapid development might urbanize our cherished area too quickly.
Despite the Musk developments being situated just outside the city's official limits, local Texas laws provide the Bastrop government with considerable influence over affairs in the area. Carrillo emphasizes that the Musk project is merely one aspect of a larger wave of development occurring in this vibrant region. She notes, He has faced backlash that is not entirely his own doing. Now that he is here, the focus must shift to managing critical issues such as housing prices and environmental concerns. Currently, Musk's corporate campus is still in its nascent stages, featuring 'Hyperloop Plaza' at its heart, which houses the Boring Companys own Bodegaa multi-purpose venue that includes a bar, coffee shop, hairdresser, and gift shop. Observing the plaza on a windy Sunday afternoon reveals a somewhat sparse atmosphere with a video game console untouched and a handful of children enjoying the adjacent playground.
The rapid developments within Bastrop and surrounding areas mirror the accelerating pace of growth in central Texas, where construction cranes consistently dot the Austin skyline, and discussions surrounding the housing market are ever-present. The area has historically experienced various cycles of economic boom and bust, including industries such as lumber and coal mining. Judy Enis, a volunteer guide at the Bastrop Museum and Visitor Center, shares insights on the town's past, emphasizing, During World War Two, the influx of soldiers and around 10,000 German POWs into Camp Swift had a far more profound impact than Elon Musk ever will.
Local sentiment towards Musk and his enterprises is complex and intertwined not only with his political stances but also with broader views on economic growth in this largely rural locale. Judah Ross, a real estate agent in the area, notes that the surge in population growth was already in motion due to the Austin tech boom, which was further accelerated by the changes brought about by the Covid pandemic. While I may be biased, Im in favor of the growth, shares Ross. Whats undeniable is the job opportunities emerging from this development. In the past year alone, Ive facilitated sales to individuals working at both Boring and SpaceX.
Alfonso Lopez, a Texan who returned home after a stint in Seattles tech industry, initially believed his new residence in Bastrop would merely be a lucrative investment before moving on. However, he soon fell in love with the town's mix of local businesses and the warmth of its residents. While not an admirer of Musk, Lopez recognizes the technological advancements his companies have achieved and appreciates living nearby, provided that these enterprises remain good neighbors. As long as they dont ruin my water supply or dig a tunnel beneath my house to create a sinkhole, I think were okay, Lopez quips, gesturing towards the metal structure that houses the Bodega and other amenities. His concerns about local water quality are not unfounded. Last year, The Boring Company faced an $11,876 fine from the Texas Commission on Environmental Quality due to water pollution violations. Initially, the company planned to discharge wastewater into the nearby Colorado River but ultimately struck a deal to route the effluent to a local wastewater treatment facility in Bastrop after community pushback. These water-related issues appear to have stalled plans for the construction of housing, which was intended to accommodate more than 100 employees of Musks companies. For now, the only living arrangements consist of a handful of temporary trailers placed behind the Bodega, surrounded by sprawling Texas plains, with a few horses grazing nearby. Carrillo asserts that extensive housing development is at least a year away from fruition.
In November, SpaceX submitted an application for a free trade zone designation, which would allow for the unobstructed movement of materials and finished products in and out of the Bastrop factory, exempt from tariffsan initiative that aligns with many of Trumps policies. Although this is a common practice among manufacturers, it is noteworthy that local officials in Texas have voiced their support for the proposal, suggesting that this could significantly bolster the local economy, despite the county anticipating a loss of approximately $45,000 in revenue this fiscal year. Additionally, SpaceX is set to receive a $17.3 million grant from the Texas government aimed at enhancing the site, with officials projecting that this investment will generate over 400 jobs and $280 million in capital investment in Bastrop. While many residents were reticent to speak negatively about Musk in person, the sentiment shifts dramatically online, where opinions can be more candid. One local resident expressed on an online forum, They will ruin everything nearby. Nothing good comes with him.