In a move that shocked the State of California, SpaceX said on Wednesday that it will built test versions of its new spaceship in south Texas. This announcement comes after the company announced massive layoffs. Los Angeles and the Southern California firms and government officials have been working to attract tech firms to a “Silicon Harbor” in the region but higher taxes, concerns about crime and a deteriorating education system have encouraged many firms to move to Texas, Florida, South Carolina and Virginia in recent years.
The company said that they are trying to streamline operations, on the move to Texas. This comes after SpaceX won approval last year to lease 19 acres (7.7 hectares), at the port`s Terminal Island. The investment in Los Angeles was to add 700 jobs and provide facilities for giant aircraft to be shipped in and out – eventually to launch sites.
Last Friday, SpaceX announced that it would lay off 10 percent of its workforce or 6,000 workers, most of them in California in their Hawthorne headquarters. The Texas focus will put SpaceX near top universities in University of Texas, TCU, SMU, Houston as well as Tulane University in neighboring New Orleans. The company has a launch facility in Boca Chica near Brownsville – an area where one ship has already been assembled.
The projects are called Starship and Starlink, with an aim to create a constellation of satellites to provide space-based broadband internet service.
Over 9,000 companies have left the state of California, and the number seems to be accelerating. Taxes and other issues have forced more companies to move east to Arizona and south to many states that have more favorable tax laws.