Elon Musk suggested that SpaceX and Tesla could reconsider their future in Texas following the Democratic victories in the state's November 3 elections, arguing that the companies moved their major operations there because of a more favorable business environment.

In a November 6 post on X, Musk explained why the companies had prospered in Texas, writing, "SpaceX and Tesla have prospered in Texas, because we were not constantly operating under an oppressive and extractive state government."

Musk also emphasized that he needs to remain close to his factories to oversee production firsthand.

"And I need to be close to the factories, so that I can walk the floor in person. That’s why the first major SpaceX factory was in LA and first major Tesla factory was in SF Bay Area," he wrote.

He attributed the companies' decision to relocate their major domestic expansions and headquarters to Texas to California's business climate, adding, "As California became increasingly difficult, due to extreme taxes and overregulation, we moved our major domestic expansions and HQ to Texas."

His remarks come as Democrats prepare to take control of Texas' governorship and other statewide offices following their victories in the midterm elections. Governor-elect Gina Hinojosa has criticized certain business arrangements involving Musk and SpaceX, including a proposed land deal near the company's Starbase facility, while also pledging greater scrutiny of data center development.

Incoming Attorney General Nathan Johnson has separately promised to investigate aspects of Musk's business dealings with the state, including Starlink's participation in Texas broadband programs.

Musk's companies have established substantial operations in Texas. Tesla operates its Gigafactory near Austin, while SpaceX maintains major manufacturing and launch facilities in South Texas. SpaceX also moved its corporate headquarters from California to Starbase in 2024.

Musk has not announced plans to move either company out of Texas. However, his comments highlight the possibility that changes in the state's regulatory and political environment could influence where he directs future investment and expansion.