Exodus of Major Companies From California Continues

Even the firm that tracks corporate departures, CBRE, has left the state amid rising costs and regulations.

Apr. 10, 2026 at 12:06am

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A minimalist studio still life photograph featuring a polished metal briefcase, a sleek laptop, and a stack of financial documents arranged elegantly on a clean, monochromatic background, conceptually representing the corporate strategy and financial implications of companies leaving California.As major corporations continue to depart California, the state's business climate faces growing uncertainty.Westlake Today

Numerous prominent companies have fled California in recent years, citing factors like high taxes, extensive regulations, and rising costs of doing business. Notable firms that have relocated their headquarters out of the state include Chevron, Tesla, SpaceX, Oracle, and Charles Schwab. The exodus has accelerated as progressive policies and legislation, including measures targeting the self-storage industry, have made California an increasingly challenging environment for businesses.

Why it matters

California's business climate has become increasingly challenging, with high taxes, strict regulations, and soaring costs driving major companies to relocate to states like Texas and Florida that offer more favorable conditions. This exodus of corporate headquarters and jobs represents a significant economic and reputational blow to the Golden State, raising concerns about its long-term competitiveness.

The details

Chevron, one of California's longest-tenured companies, announced in 2024 that it would move its headquarters from San Ramon to Houston, citing the need to be closer to the 'energy capital of the world.' Tesla, SpaceX, and X (formerly Twitter) also departed California, with CEO Elon Musk blaming a transgender law as the 'final straw.' Financial services firm Charles Schwab left San Francisco for Westlake, Texas, in 2019, citing high costs and taxes. Oracle has moved multiple times, first from California to Texas and then to Nashville, Tennessee, as the company's leadership sought to reduce its footprint in the state.

  • Chevron announced its headquarters move in August 2024.
  • Elon Musk cited a transgender law as the 'final straw' for moving SpaceX and X out of California in July 2024.
  • Charles Schwab left San Francisco for Westlake, Texas, in late 2019.
  • Oracle moved from California to Texas in 2020, and then to Nashville, Tennessee, more recently.

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.

Elon Musk

The chief executive or founder of Tesla, SpaceX, and X (formerly Twitter), who cited progressive policies and legislation in California as reasons for moving those companies out of the state.

Charles Schwab

The founder and chairman of financial services firm Charles Schwab, who moved the company's headquarters from San Francisco to Westlake, Texas, in 2019 due to high costs and taxes in California.

Larry Ellison

The CEO of Oracle, who moved the company's headquarters from California to Texas in 2020 and then to Nashville, Tennessee, more recently.

H. Thomas Boyle

The CEO of Public Storage, who announced in 2023 that the company would move its corporate headquarters from Glendale, California, to Frisco, Texas.

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What they’re saying

“We've had some policy differences with California. But this isn't a move about politics. It's a move about what's good for our company to compete and perform.”

— Mike Wirth, CEO, Chevron

“This is the final straw. Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas.”

— Elon Musk

“The costs of doing business here are so much higher than some other place.”

— Charles Schwab, Founder and Chairman, Charles Schwab

“It's about finding the right talent across the country and building the team going forward, and we look forward to strong leadership in both offices.”

— H. Thomas Boyle, CEO, Public Storage

What’s next

As more companies consider leaving California, state lawmakers may face increasing pressure to address the factors driving the exodus, such as high taxes, burdensome regulations, and the rising cost of doing business. The long-term economic and reputational impact of this corporate migration will likely be a key issue in future state elections and policy debates.

The takeaway

The steady stream of major companies departing California highlights the state's growing challenges in maintaining a business-friendly environment. While some firms cite specific policy decisions as the 'final straw,' the broader trend reflects a broader concern over the cumulative costs and constraints of operating in the Golden State. This exodus represents a significant economic and reputational blow that could have lasting implications for California's competitiveness.