Elon Musk wants to transform SpaceX's Starbase into a Texas city. But there's a hurdle

Elon Musk, world's richest man, has announced that SpaceX's headquarters will officially be located in Starbase, Texas, marking a significant shift for the aerospace company. This announcement was made via a post on social media platform X, where Musk stated, "SpaceX HQ will now officially be in the city of Starbase, Texas!"

Elon Musk's SpaceX has initiated plans to convert its South Texas facility into an incorporated city. On Thursday, the SpaceX CEO submitted a formal request to Cameron County officials, seeking an election to establish the SpaceX facility, known as Starbase, as an official municipality.

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Elon Musk says SpaceX headquarters to be in Starbase, Texas

The Starbase facility is situated on Boca Chica beach at Texas's southernmost point, adjacent to the Mexican border, serving as SpaceX's rocket manufacturing and launch complex, according to a TOI report. A local assessment conducted by Trevino this year revealed that the Starbase site employs over 3,400 full-time staff and contractors.

According to a Bloomberg report, it is the primary location where SpaceX builds, tests, and launches its Starship's Moon and Mars rockets and associated systems. The report added that a large warehouse dubbed Starfactory has been built to replace the site's production tents.

Starbuck residents submit petition

The residents of Starbase submitted their petition to Cameron County, with Starbase General Manager Kathryn Lueders stating, "To continue growing the workforce necessary to rapidly develop and manufacture starship, we need the ability to grow Starbase as a community. That is why we are requesting that Cameron county call an election to enable the incorporation of Starbase as the newest city in the Rio grande valley."

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"Incorporating Starbase will streamline the processes required to build the amenities necessary to make the area a world class place to live-for the hundreds already calling it home, as well as for prospective workers eager to help build humanity's future in space," the letter added.

Speaking to AP, Cameron County's top elected official, Judge Eddie Treviño Junior, noted that despite talks of incorporation in 2021, this was the first time a petition was officially filed.

“Our legal and elections administration will review the petition, see whether or not it complied with all of the statutory requirements and then we’ll go from there,” he said.

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Musk wants to move headquarters of his companies to Texas

In July, Musk said he was moving the headquarters of two of his companies – social media platform X and rocket company SpaceX – to Texas from California, citing a new gender identity law there as the “last straw.” The billionaire previously said SpaceX’s main office would move to an existing facility in Boca Chica, Texas, while X would move to Austin. However, the extent to which jobs or facilities in California will transfer to Texas was unclear.

The concept of establishing Starbase as a city was previously introduced by Musk. In 2021, he shared a brief social media announcement stating, "Creating the city of Starbase, Texas."

He also transferred SpaceX’s incorporation from Delaware to Texas earlier this year. This followed the shareholder vote held by Musk to move Tesla’s state of incorporation to Texas, where it has its headquarters, after a Delaware judge invalidated his $56-billion pay package.

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In 2021, Musk moved Tesla’s headquarters from California to Texas as well but said that California would remain its engineering hub. Musk changed his own residence in 2021 from California to Texas, where there is no state income tax on individuals.

The company's expansion in the area has encountered opposition from certain local organisations. A group called Save RGV initiated legal proceedings against SpaceX in July, alleging environmental violations and improper disposal of contaminated water into the adjacent bay. SpaceX responded by highlighting a state assessment that found no environmental risks and rejected the lawsuit as "frivolous."