Companies Flee California Amid Rising Costs, Regulations, and Taxes

Even the company that tracks the exodus, CBRE, has left the Golden State for greener pastures.

Apr. 9, 2026 at 10:19pm

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A high-end, photorealistic studio still-life photograph featuring a polished, geometric metal sculpture in the shape of the California state outline, resting on a clean, monochromatic background and reflecting the dramatic studio lighting, conceptually representing the abstract corporate strategy and financial implications of companies leaving the state.A sleek, minimalist sculpture representing the state of California serves as a symbolic metaphor for the ongoing corporate exodus from the Golden State.San Ramon Today

Numerous companies have departed California in recent years, citing the state's high costs, extensive regulations, and burdensome taxes as key factors driving their decisions to relocate. Firms have moved to states like Texas and Florida, which offer more business-friendly environments with no state income tax. Notable companies that have left California include Chevron, Tesla, SpaceX, Oracle, and Public Storage.

Why it matters

The exodus of major corporations from California highlights the state's ongoing challenges in retaining businesses amidst a climate of progressive politics, stringent regulations, and high costs of doing business. This trend raises questions about California's long-term economic competitiveness and its ability to maintain its status as a hub for innovation and entrepreneurship.

The details

Companies have cited a variety of reasons for leaving California, including the state's high housing prices, extensive business regulations, and burdensome tax rates. For example, Chevron moved its headquarters from San Ramon to Houston, citing the latter as the 'energy capital of the world.' Elon Musk, the CEO of Tesla, SpaceX, and X, blamed a transgender law in California as the 'final straw' that led him to relocate those companies to Texas. Other firms, such as Charles Schwab and Oracle, have also shifted their operations out of the state, citing the high costs of doing business in California.

  • In August 2024, Chevron announced it would move its headquarters from San Ramon to Houston.
  • In July 2024, Elon Musk said SpaceX would move its headquarters from Hawthorne to Starbase, Texas.
  • In late-2019, Charles Schwab moved from San Francisco to Westlake, Texas.
  • In 2020, Oracle moved from California to Texas, and later to Nashville, Tennessee.

The players

Chevron

A major oil and gas company that announced it would move its headquarters from San Ramon, California to Houston, Texas in 2024, ending its 145-year presence in the state.

Elon Musk

The CEO of Tesla, SpaceX, and X, who blamed a transgender law in California as the 'final straw' that led him to relocate those companies to Texas.

Charles Schwab

The founder and chairman of the financial services firm Charles Schwab, who moved the company from San Francisco to Westlake, Texas in late-2019 due to the high costs of doing business in California.

Larry Ellison

The co-founder, CTO, and executive chairman of Oracle, who moved the company's headquarters from California to Texas in 2020, and later to Nashville, Tennessee.

H. Thomas Boyle

The CEO of Public Storage, who announced in February 2026 that the company is moving its corporate headquarters from Glendale, California to Frisco, Texas, citing the talent pool and business-friendly environment in the Lone Star State.

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What’s next

California lawmakers may need to reevaluate the state's business climate and consider policy changes to stem the tide of corporate departures and retain companies within the state.

The takeaway

The exodus of major corporations from California highlights the state's ongoing challenges in maintaining a business-friendly environment amidst rising costs, extensive regulations, and high taxes. This trend raises concerns about California's long-term economic competitiveness and its ability to retain its status as a hub for innovation and entrepreneurship.