As X leaves San Francisco, nearby businesses worry about the future while local officials cheer

Elon Musk's social media company X, formerly known as Twitter, is leaving San Francisco, which is causing some nearby businesses and groups to worry about the future of the area. 

Musk announced in July that X's headquarters would move to Austin, Texas, and leave California because of the state passing a gender identity law that prohibits any adopted school board policy, rule, or administrative regulation that requires parents to be notified of their child’s gender identification. Musk, who has one child that identifies as transgender, said the law was "the final straw" and added that because of it "and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas."

While X's headquarters is moving to Texas, some San Francisco employees will be transferred to other offices that are located in California. 

Local news outlet SFGate reported that response to the announcement was sharply divided between those whose businesses benefited from the major tech platform’s presence in the community versus individuals who disagreed or disliked Musk due to his politics. 

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Cristian Torres, co-owner of CTKempanadas, reportedly delivered 200 empanadas on Tuesday, noting that 20% of his business comes from X or its employees. 

"It’s sad to see them go," Torres said, adding he hopes to still sell his wares to the company’s employees even after its formerly San Francisco-based employees are moved to San José. "I told them I will deliver over there."

Perry Dann Pancho, an assistant manager at local Poké Bar restaurant, also reportedly claimed that his sales are down 20% to 30% from a year ago.

"Before [the pandemic], all the people from outside the Twitter building, they eat here," Pancho said. "Right now, no one."

Ludovic Racinet, co-owner of the Function, a nearby comedy club, asserted, "Most of the city and most of the neighborhood take it as a stab in the back. The city has done so much for Twitter, now X."

Meanwhile, local officials argued San Francisco would be better off without Musk's company in their city. 

David Chiu, former president of San Francisco’s Board of Supervisors, argued the X platform has not been a "good neighbor" since Musk took over.

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"Elon Musk has allowed antisemitism, racism, homophobia, transphobia to flood the platform and in a way that is antithetical to the values of San Francisco," Chiu argued. "Since Elon’s takeover, Twitter has become such a hollow shell of itself that I doubt many will notice its actual departure."

He had also told The New York Times in a previous statement, "I share the perspective that most San Franciscans have, which is good riddance."

Mayor London Breed had told the Times she had not offered X anything to stay.

"I’m not going to beg anybody," Breed said. "But I made it very clear that my goal is to ensure that companies succeed."

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"She said she thought Mr. Musk’s political agenda had driven him out of San Francisco, but did not elaborate," the outlet reported. 

Meanwhile, the city’s chief economist, Ted Egan, had contested that the company’s size had shrunk so much already its absence would make little difference. 

"In many respects, they were already gone," he told the Times.