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Elon Musk revived L.A. aerospace with SpaceX. Will it thrive without him?

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Elon Musk revived L.A. aerospace with SpaceX. Will it thrive without him?

When Elon Musk decided to start a rocket company two decades ago, he headed down Interstate 5 and the 405 and didn’t stop until he reached the South Bay, the center of the region’s aerospace industry, hard hit by a drop in defense spending after the Cold War.

There, the Silicon Valley entrepreneur, flush with cash from the sale of PayPal, founded Space Exploration Technologies in 2002 and defied skeptics, building his startup into a $210-billion giant and fueling a revitalization of the shrunken industry.

This week, the Hawthorne company’s future in the region was thrown into doubt when Musk posted on X that he planned to move SpaceX’s headquarters to the outskirts of Brownsville, Texas, where it is developing its massive Starship rocket for planned trips to the moon and, someday, Mars.

It’s unclear what the fallout will be locally.

SpaceX hasn’t commented on how many jobs will be affected by the relocation, and industry observers say it’s likely the company will maintain significant manufacturing operations in Los Angeles County, where it employed about 6,000 people in 2023, according to an annual survey by the Los Angeles Business Journal.

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But the relocation is undoubtedly a loss to the region’s revived space industry.

A leader in the space economy

“SpaceX has been one of the pillars of the Southern California new space economy,” said Kevin Klowden, the Milken Institute’s executive director of MI Finance. The move “is significant symbolically in that it shows Southern California isn’t indispensable in an industry where it clearly is a leader.”

The aerospace industry was pioneered in L.A. County, with the first rockets set off in the Arroyo Seco near Caltech in the 1930s — the humble origins of what was to become the Jet Propulsion Laboratory, a leader first in rocket and satellite development and later in interplanetary spacecraft.

Douglas Aircraft, Lockheed, Northrop and other companies built hundreds of thousands of planes during World War II and maintained defense work here. In Downey, North American Aviation built the command module of the Apollo 11 spacecraft that landed astronauts on the moon. Rockwell International built the space shuttles in Downey and Palmdale.

The massive defense spending cuts after the collapse of the Soviet Union devastated the industry, dropping employment in the county from about 130,000 in 1990 to less than half that a decade later — but with its heritage, talent pool and world-class universities, the region was a logical place for SpaceX to set up shop.

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A new, smaller, Southern California aerospace economy has since developed, building on the remaining operations of legacy companies and technological advancements — even as other centers have emerged, such as Kent, Wash., where Jeff Bezos’ Blue Origin space company is located.

Virgin Galactic, the space tourism company founded by British billionaire Richard Branson in 2004, is based in Tustin and has its design and manufacturing operations in Mojave, where it also performs test flights. Its commercial operations are in New Mexico.

Rocket Lab, a maker of lightweight rockets that launch small satellites, moved its headquarters to Long Beach just three years ago.

People walk on a pier beneath the contrail from a SpaceX Falcon 9 rocket launched from Vandenberg Space Force Base on April 1 in San Clemente.

(Mario Tama / Getty Images)

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And former SpaceX employees have founded dozens of startups. Crunchbase, which tracks venture capital and startups, tallies more than 50. Local ones include Relativity Space, a Long Beach maker of reusable rockets; Varda Space Industries, an El Segundo company developing drugs in low-Earth orbit; and L.A. telemetry startup Sift, which raised $7.5 million in venture funding last year.

“SpaceX isn’t unique, but it’s the star,” said Klowden, noting the “ecosystem” that has sprung up around it.”

While Musk’s declaration Tuesday was prompted by a public policy dispute — Gov. Gavin Newsom’s decision to sign a bill prohibiting school districts from mandating that teachers notify parents about a student’s change in gender identity — Musk has long complained about the state’s regulatory environment and has a history of tangling with government officials.

He moved Tesla’s headquarters from Palo Alto to Austin, Texas, in 2021 after Alameda County ordered the company in 2020 to halt production amid the COVID pandemic. Separately, the billionaire noted crime concerns in also tweeting Tuesday that he plans to move X, the social media platform formerly known as Twitter, from San Francisco to Austin.

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Klowden said he believed Musk has been considering the idea of moving SpaceX, though it’s still unclear exactly whether Musk plans to transfer a handful of executives, additional employees or all of the operations, which is not seen as likely. Neither Musk nor SpaceX has offered clarification. The company did not respond to requests for comment.

City officials were also grappling with the announcement.

“We understand that business decisions are driven by a variety of factors, and we remain committed to fostering a thriving business environment in Hawthorne,” Alex Vargas, the city’s mayor, said in a statement. He added: “[W]e want to reassure our workforce and community that the city of Hawthorne is taking proactive steps to mitigate the impact of SpaceX’s potential relocation.”

Much of the skepticism regarding Musk’s SpaceX tweet revolves around how the Tesla move was carried out. The electric vehicle maker produces its Model Y SUV and new Cybertruck in Austin but still operates a factory in Fremont, where it makes multiple models. Last year, Tesla said it was opening a new global engineering headquarters in Palo Alto previously occupied by the headquarters of Hewlett-Packard.

A flight to Texas?

But some familiar with the company think the headquarters relocation announcement could presage a larger presence in Texas.

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Tim Buzza, a former SpaceX vice president, said that while the company builds its workhorse Falcon 9 rocket and Dragon capsules that service the International Space Station in Hawthorne, the company’s future is the massive Starship rocket being developed at the Brownsville facility called Starbase on the Gulf of Mexico.

“The center for the next level of execution for SpaceX is Starbase. The direction and the momentum of the company is already moving to Texas,” said Buzza, who was one of the first five employees at SpaceX, worked there for 12 years and remains in contact with many at the company.

SpaceX is seeking approval to launch 90 rockets from Vandenberg Space Force Base by 2026, a sharp increase from its previous plans for the Santa Barbara County military base. Buzza said the launches are important for the Starlink satellite broadband network SpaceX is building, since they put the satellites into a polar orbit, complementing Florida launches that put them in an equatorial orbit.

However, the Starship rocket — taller and more powerful than the Saturn 5 that launched Apollo astronauts to the moon — could launch many more satellites than the Falcon 9. SpaceX has opened a new Starlink factory outside Austin, and last month Starship completed its fourth test flight from Starbase, dubbed its “Gateway to Mars.”

The company has been building its operations at Starbase and this month asked the Federal Aviation Administration for permission for up to 25 annual launches of Starship and its Super Heavy rocket, a more powerful derivative of its Falcon 9. The company operates an engine testing facility in McGregor, Texas.

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Klowden questioned the company’s ability to move or attract large numbers of workers to the Brownsville area, at least in the immediate future, given the lack of housing and other infrastructure. But Buzza said SpaceX overcame many of the same issues in McGregor. He doesn’t think Musk would move Falcon 9 production or the Dragon capsule program from Hawthorne, because both may be phased out over time.

Still, even the loss of SpaceX’s executive operations to Texas would be a blow to Los Angeles and the Golden State, which have suffered a humiliating series of corporate defections over the last few decades. L.A.-area companies that have moved headquarters elsewhere include Lockheed, Northrop Grumman and more recently Aecom, a global engineering firm. Software giant Oracle left Redwood City in Silicon Valley for Austin in 2020 (and has since announced a move to Nashville).

“Whenever any company announces that they might or they will leave the region, it is not good for us. We definitely need to do a much better job in terms of business retention,” said Stephen Cheung, chief executive of the Los Angeles County Economic Development Corp.

However, he said the region’s aerospace economy is still robust and has shown an ability to evolve. After the bankruptcy last year of Branson’s separate Virgin Orbit rocket company, Rocket Lab acquired the defunct company’s former Long Beach headquarters, he noted.

That move mirrors SpaceX’s evolution. Its first location in L.A. County was in El Segundo, but as it grew it moved in 2007 into an old Northrop site in Hawthorne that had been converted into a factory for the production of Boeing 747 fuselages.

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Aerospace Corp., an El Segundo federally funded nonprofit that provides scientific and technical support to the aerospace industry, announced in March that it was moving its executive offices to Virginia but simultaneously announced it was investing $100 million in its local campus.

The region is still home too for major defense work.

Northrop Grumman is building the new B-21 digital bomber in Palmdale, which is slated to replace the B-2 stealth bomber it built decades ago in Pico Rivera. The high desert city also is home to Lockheed Martin’s famed “Skunk Works,” a secretive, cutting-edge military research and development facility.

Klowden said that for some SpaceX workers a move to South Texas could be a no-go, and he expects other aerospace companies will attempt poach its workers. Indeed, Orange County asteroid mining company Astroforge Inc. said it was hiring in a reply to Musk’s SpaceX tweet.

Earlier this week, workers streaming in and out of SpaceX’s Hawthorne complex declined to speak to a Times reporter. However, a salesman for SpaceX vendor GF Machining Solutions who asked his name not be used, said he hopes Musk was not serious about relocating the headquarters to Texas.

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“Well, I wouldn’t want that to happen, because I’ve lived in California all my life and I would lose that account if SpaceX moved,” the Corona resident said. “I’m not moving to Texas.”

Times staff writer Ashley Ahn and Bloomberg News contributed to this report.

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Waymo reports teen riders for bad behavior and delivers them to the police

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Waymo reports teen riders for bad behavior and delivers them to the police

Robotaxis could be turning into robocops.

A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.

According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.

“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”

Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.

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“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “

A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.

Waymo did not immediately respond to a request for comment.

Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.

The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.

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The company said it does not use facial recognition or other biometric identification technologies to identify individuals.

“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.

The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”

“At least they got a designated driver?!” one user commented.

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Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination

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Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination

At the Supreme Court, the unfounded fear of boys masquerading as girls in youth sports rolled the clock back on gender equality.

On the surface, the Supreme Court’s June 30 opinion upholding state laws barring transgender girls from women’s and girl’s sports teams looks like a victory for women’s rights.

The 6-3 opinion by Justice Brett M. Kavanaugh certainly presents itself that way. “Females and males have inherent physical differences relevant to athletic performance,” Kavanaugh wrote. “Therefore, in contact sports, forcing female athletes to compete against males can create significant safety risks.” He also asserted that “forcing female athletes to compete against males can undermine competitive fairness.”

The ruling applied to prohibitions enacted in Idaho and West Virginia against “biological” males’ participation on women’s teams in public schools. Federal judges in both states overturned the bans. The Supreme Court majority restored them. The ruling essentially upholds similar bans enacted in 25 other states.

There was no record of any transgender person participating in school sports in the State, let alone any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.

— Justice Sonia Sotomayor, demolishing the Supreme Court’s argument in favor of banning transgender girls from girl’s sports

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Kavanaugh, like Donald Trump and others in the anti-transgender camp, maintained that one’s gender is an immutable fact of life, established even before birth.

Anything else, Trump stated in an executive order he issued on inauguration day 2025, could only be the product of “gender ideology extremism.” The U.S., his order stated, recognizes “two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality.” That’s a “biological truth,” he declared.

In his own version of this overconfident and factually insupportable conclusion, Kavanaugh wrote: “As all agree, females and males have inherent physical differences relevant to athletic performance.”

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Science recognizes that some people are “born with sex traits that don’t fit into typical male or female patterns,” to cite a discussion on the Cleveland Clinic web page on the topic “intersex.” The condition “may involve chromosomes, hormones, reproductive organs or genitals.”

From a psychological standpoint, medical science recognizes “gender dysphoria” as a real condition often requiring counseling and medical intervention such as the use of puberty blockers and hormones to stave off the development of secondary sex characteristics until the condition can be resolved.

No one disputes that there are physical differences between the sexes. Few would dispute that on average or even at the median, males may be bigger and more powerful than females, or that in certain contact sports the difference may be telling and on occasion dangerous.

But that’s not the same as asserting that the physical differences between males and females invariably mean that men will invariably prevail over women in all competitions or that their participation will endanger women.

The International Olympic Committee — in a policy statement Kavanaugh cited incompletely — says that in “most running and swimming events,” males have a 10% to 12% advantage over women. That’s a range that would accommodate the full spectrum of outcomes — transgender females win, cisfemales win, they tie. (The “cis” prefix denotes those living consistent with their birth gender.)

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West Virginia and Idaho addressed this ambiguity by banning transgender women from all girls’ teams. So under their rules transgender girls can’t play football or soccer with cisgirls. But what’s the argument in favor of banning them from the 100-yard dash, or cross-country track, or diving, or archery?

But something else is going on here. The Supreme Court’s ruling was almost preordained, given the years-long campaign by conservatives to demonize transgender individuals as if they’re members of an alien species.

It will be recalled that during his presidential campaign, Trump spun a despicable fantasy in which children were kidnapped in school and secretly subjected to sex-change operations.

Trump’s executive order wiped out policies aimed at protecting transgender adults from discrimination. He moved to outlaw gender-affirming medical therapies for anyone under 19 by cutting off federal funding for healthcare institutions that provide such care.

He banned transgender individuals from serving in the military and ordered federal prison officials to move transgender inmates into the general populations consistent with their birth genders, which exposes them to physical assault. (Federal Judge Royce Lamberth of Washington, D.C., has blocked the government from transferring three transgender women into the male prison population or terminating their hormone treatments.)

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I wrote during Trump’s first term, when his anti-transgender policies were still gestating, that the goal was to show that “one can target any community, as long as it doesn’t have a strong political voice or political power. These are the actions of bullies and cowards, pretending to be strong.”

Last year, the Supreme Court struck its first blow against transgender rights by upholding a Tennessee law banning transgender care, including puberty blockers and hormone therapy, for minors. Similar laws have been enacted in 25 other states. The majority in that ruling by Chief Justice John G. Roberts Jr. was identical to the one in the June 30 ruling — Roberts, Kavanaugh, and Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett.

Who are the targets of this ideological campaign? They number only about 1.6 million U.S. adults, or one-half of 1% of the U.S. population. About 300,000 adolescents ages 13 to 17, or 1.4%, identify as transgender, according to a study by UCLA School of Law.

In West Virginia, as Justice Sonia Sotomayor observed in her dissenting opinion, “there was no record of any transgender person participating in school sports in the State, let along any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.”

In endorsing the flat bans directed at transgender women in Idaho and West Virginia, Kavanaugh argued that any attempt to implement case-by-case judgments of students’ requests to join sports teams inconsistent with their biological gender would create “an enormous practical and administrability problem.”

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Is that so? That wasn’t the case in Maine, where the annual K-12 population is more than 170,000. There, a committee was charged with determining whether a student’s participation in a sport consistent with their gender identity but inconsistent with their biological sex would “result in an unfair athletic advantage” or present a risk of injury to others. The committee held 56 hearings from 2013 through 2021, or an average of seven per year. During the entire time span, only four involved transgender girls. (The outcome of those hearings couldn’t be learned.)

It was Maine’s policy, one might recall, that provoked a confrontation between Trump and Maine Gov. Janet Mills at the White House last year, when Trump threatened to withhold federal funding from the state unless it barred transgender students from competing on women’s sports teams. “We’ll see you in court,” Mills snapped.

Whether the Idaho and West Virginia laws genuinely protect girls from unfair competition is questionable. (The Idaho law is styled the “Fairness in Women’s Sports Act.”) In practice, the laws may subject women in public schools to “invasive sex verification procedures,” as educational expert George Theoharis of Syracuse University wrote after the court ruling.

They’re also based on a retrograde view of women as fragile creatures needing men’s protection, Theoharis wrote — “the same logic that has historically been used to justify excluding women from making their own healthcare decisions and girls from rigorous math and science; that physically demanding work is simply beyond them.” (There don’t appear to be any state laws barring transgender women from competing in men’s sports.)

Becky Pepper-Jackson, the plaintiff in the West Virginia case, in which she is identified only as B.P.J., is the only transgender girl who sought to join girl’s teams — track and cross-country — in the state. That was in 2021, just after West Virginia passed its law and she was about to enter sixth grade. She didn’t appear to pose any competitive risk to others on the track and cross-country teams she applied to join — her lawyers told the Supreme Court that on those no-cut teams, she “came in near the back.”

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Anyway, she had not gone through male puberty, which theoretically might have endowed her with a competitive advantage, because she had been taking puberty blockers and female hormones.

Thanks to the court’s ruling, Sotomayor observed in a dissent joined by Justices Elena Kagan and Ketanji Brown Jackson, West Virginia can deny Becky access to school sports “because it thinks they have an inherent athletic advantage, even if the facts show that they do not.”

B.P.J., Sotomayor wrote, “cannot practice on girls’ teams, even if she would not take anyone’s spot in an eventual competition, even if everyone who tries out for the team makes it, and even if having the chance to participate could aid immensely in treating B. P. J.’s gender dysphoria.”

So whose interest was really protected by the Supreme Court?

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Orange County real estate investor pleads not guilty in $100 million bank fraud case

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Orange County real estate investor pleads not guilty in 0 million bank fraud case

An Orange County real estate investor accused of criminally defrauding an Arizona bank of nearly $100 million pleaded not guilty Monday and remains in custody.

Mahender Makhijani, 44, of Corona del Mar — who also was ordered by an arbitrator to pay $1.34 billion in a separate civil fraud case — was arraigned in Santa Ana federal court on two charges.

He is accused of bank fraud and making a false statement to a bank in a June 8 case involving a $100 million real estate loan made by Phoenix-based Western Alliance Bank. He was taken into custody on June 10.

Makhijani is accused of providing bogus collateral for the October 2024 loan now in default. In a civil lawsuit, Western Alliance said the outstanding balance as nearly $99 million.

Prosecutors say he falsified title insurance policies that showed the bank would have a first lien on the underlying collateral if the loan went bad, when in fact it did not.

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A trial was set for August 11 before U.S. District Judge David O. Carter in Santa Ana.

Michael Schachter, his criminal defense attorney, did not respond to messages seeking comment.

In the civil case, an arbitrator in May ordered Makhijani to pay Laguna Beach real estate mogul Mohammad Honarkar $1.34 billion after ruling he had fraudulently induced him into a 2021 joint venture — and then wrested control and lost to creditors more than two dozen properties Honarkar had owned.

Makhijani has not been criminally charged in that case, but prosecutors alleged in an affidavit in support of the bank fraud charges that he used “force and threats” in his dealings with Honarkar and others — including taking over the landmark Hotel Laguna in 2023 that Honarkar was renovating.

Prosecutors sought to hold Makhijani without bail after his arrest.

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The affidavit noted he is a legal Indian immigrant with a home and bank accounts in that country, has access to private jets and threatened to “run away” if caught in a difficult situation.

The request was denied and he was granted $500,000 bail.

However, Makhijani remains in custody after a hearing sought by prosecutors last month before Magistrate Judge Autumn Spaeth.

The judge declined to accept a $450,000 cashier’s check submitted by a Makhijani associate for the bail, finding insufficient proof the source of the funds was legitimate, according to court records.

Makhijani is not prominent outside Orange County real estate circles, but he established a thriving distressed-assets business over the last decade that attracted prominent Southern California real estate investors.

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Prosecutors said it paid for a lifestyle that included two multimillion-dollar homes in Corona del Mar, a luxury apartment in Newport Beach and various luxury vehicles.

As of last month, prosecutors had not fully traced his assets, which they believe are not held in his name and some of which may be in India.

The businessman employed an array of shell companies and strawmen to sign documents on his behalf, and to stand in for him as operators of his companies, according to the affidavit.

Makhijani told an associate he took extra precautions because wanted to insulate himself from litigation and that “they were sharks in the distressed world who took advantage of people,” the affidavit stated.

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