Elon Musk wants to open STEM-focused schools, university in Austin

In Elon Musk’s latest move to expand his Central Texas empire, the billionaire is aiming to open a primary and secondary school and eventually university in Austin.

The move was first reported by Bloomberg, which cited a tax filing filed with the Internal Revenue Service, from Elon Musk’s newest private foundation, called “The Foundation,” which is seeking tax exempt status and lays out plans to operate the school.

According to the filing, the school aims to start as a primary and secondary school in Austin focused on science, technology, engineering and math (STEM) subjects with about 50 students, and plans to scale over time.

The filing noted the school aims to “create a university dedicated to education at the highest levels” with curriculum focused on math, science, engineering, physics and hands-on-learning.

The Foundation, which is registered in Houston, is a separate entity from the billionaire’s 'Elon Musk Foundation,' which relocated to Austin in 2020. The tax filing notes the foundation is propped up by a roughly $100 million donation from Musk. The school’s tax exemption document was filed in October, and approved in March, according to Bloomberg.

According to filings with the state, the entity does business in Texas as "The X Foundation," and first registered in the state in February 2022.

Here’s what we know about the school

The school, which is not given a name in the application, is expected to primarily serve students in and around Austin and will also use "distance education technologies” with curriculum focused on STEM and other topics. The university would similarly offer traditional education, as well as “hands-on learning experience including simulations, case studies, fabrication/design projects and labs" to its students.

The filing said the school, which has not yet started operations, will start out tuition free, but plans to “eventually” charge tuition across primary, secondary and university levels and expects to award need-based scholarships to those accepted, the filing said. It also noted plans to develop its own intellectual property and hire employees in the future.

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What other schools are in Austin?

If it opens, Musk's university would join an already busy college town. Austin was ranked first by WalletHub for best college city in the United States this year. The city is home to several universities, most famously home to University of Texas at Austin – recognized by TIME Magazine as No. 14 for Best Colleges for Future Leaders. It is also home to Concordia University, Huston-Tillotson University, St. Edward’s University and Austin Community College.

The newest addition, the University of Austin, announced in November that it received a certificate of authority from the Texas Higher Education Coordinating Board to begin accepting students and granting degrees. Founders announced their intent to open the University of Austin two years before that, pitching it as a new liberal arts college “dedicated to the fearless pursuit of truth.” Today, they have raised more than $200 million in private donations.

In Texas, universities are able to start operations without accreditation, but must have accreditation to apply for federal funds or offer degrees. The University of Austin ran high school, graduate and undergraduate programs before its certificate of authority, and now can grant degrees under the certificate for two years.

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How does a university get accredited in Texas?

The Foundation's tax document notes the university plans to seek accreditation from the Southern Association of Colleges and Schools Commission on Colleges. On their website, the accreditor states an institution must submit an application “describing the characteristics of the institution" and with required financial documents.

The Southern Association of Colleges and Schools Commission on Colleges told the American-Statesman Wednesday that they have not received an application for a new university in Austin.

In Texas, the Texas Higher Education Coordinating Board cannot accredit institutions. Private postsecondary institutions seeking to offer degree programs in Texas have to seek accreditation from an accreditor recognized by the board and then obtain a Certificate of Authorization. Institutions could also obtain a Certificate of Authority while they are working toward accreditation, like the University of Austin.

Belle Wheelan, the president of the Southern Association of Colleges and Schools Commission on Colleges, said schools take three to five years to reach candidacy status and become accredited. The process is rigorous, evaluating quality, finances and academic programs, Wheelan said. The website states that preparing an application alone can take from several months to multiple years depending on the institution.

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This isn't Elon Musk’s first school

This wouldn't be the first time Musk has expressed interest in opening a higher education institute. In October 2021, the same month The Foundation's tax exception document notes it was formed, Musk took to Twitter to joke about starting his own university, with a profane acronym. “Am thinking of starting new university: Texas Institute of Technology & Science.”

The Bloomberg report also comes the same week that Musk posted on X that SpaceX and Tesla have "noticed a meaningful degradation in the capability of US college graduates over the past several years."

Musk previously founded Ad Astra, a self-described "experimental school" in 2014 for the children of SpaceX employees in California. The school, which changed its name to Astra Nova and became an online school with global enrollment, is now available to anyone ages 10 to 14. The school’s website says it offers class sizes between 6 and 16 students, and serves about 185 students across its programs.

Ad Astra may have expanded to Texas in recent years, though it has made no official announcement. Since 2021, there have been at least two different versions of an Ad Astra organization registered in Texas since July 2021, both tied to Jared Birchall, who leads Musk's family office. The latest was registered in September under the name Ad Astra LLC.

Birchall is also listed as a board member for the Foundation, along with Steven Chidester, a tax attorney with Withersworldwide, and two employees for California-based Catalyst Family Office Randall Gong and Teresa Holland. The tax filing also said the foundation expects to appoint "leaders in the educational community… shortly."

Ad Astra’s filing are also linked to Withersworldwide, a law firm that caters to the ultra-rich. Ad Astra LLC, lists Withers Bergman LLP as a registered agent, and is also registered to the same address as a Texas Withersworld location.

The previous Ad Astra Texas entity, which was registered as a branch of the California school, has since dissolved and listed an Austin post office box as its address and Birchall and Musk as directors.

But whether Ad Astra and Musk’s latest school will become the same entity remains unclear.

The schools would join a growing number of Musk-tied entities that have moved or expanded to Central Texas in recent years. This includes Tesla and The Boring Company which are both headquartered in the Austin-area. Neuralink and SpaceX also both have significant presences in the region.

This article originally appeared on Austin American-Statesman: Elon Musk plans to open a new university in Austin: What we know