A stampede of big companies has left California for Texas — the latest is oil company Chevron.
Tesla, Charles Schwab, and Oracle already moved from the Golden State to the Lone Star State.
Texas boosters say its low taxes and light-touch regulation are helping lure businesses.
The rush of companies leaving California for Texas is becoming a downright stampede.
Chevron, which has called California home since 1879 when it began as the Pacific Coast Oil Company, is the latest.
The oil company had been sued by its home state late last year. California accused Chevron and other energy giants of downplaying the risks of fossil fuels.
But Texas has no such qualms — with Gov. Greg Abbott tweeting on Friday, "WELCOME HOME Chevron! Texas is your true home."
Just in case there was any confusion, he added: "Drill baby drill."
Chevron joins a raft of other companies that have pulled up stakes in California and left for Texas, which had 52 Fortune 500 companies in 2024.
Global real estate company CBRE — which itself moved in 2020 from Los Angeles to Dallas — said eight Fortune 500 companies pulled their headquarters out of California from 2018 through 2023. And 10 moved to Texas.
Still, it's important to note that California is no slouch. It's, of course, the cradle of tech in Silicon Valley and is home to Apple, Alphabet, Meta, and Nvidia. And it had 55 Fortune 500 companies in the magazine's latest tally.
But it's time to subtract one from that list: Chevron, headquartered in San Ramon, was No. 15.
Indeed, Texas seems to be having a moment right now. Here are some of the other biggest companies that have already moved to the Lone Star State.
Chevron
Chevron becomes the most recent company to move from the west coast to Texas.
PATRICK T. FALLON/AFP via Getty Images
The most recent company to depart California, Chevron, announced that its headquarters will move from San Ramon to Houston before the end of 2024.
The energy mammoth said the move will help join senior leaders and "enable better collaboration and engagement with executives, employees, and business partners."
Chevron already has about 7,000 employees in the Houston area and 2,000 in San Ramon and expects all corporation functions to move to Texas within the next five years, it said in a statement.
Tesla
Musk moved Tesla's headquarters from Palo Alto, California to Austin in 2021.
John Thys/AFP via Getty Images
In 2021, Elon Musk officially moved Tesla's headquarters from Palo Alto, California, to Austin. At the time, Musk said the change was because employees were struggling to afford housing in the Bay Area, leading to longer commutes.
The Golden State is notoriously expensive. According to Zillow data, the average home there costs $786,730. In Texas, it's $308,121.
"There's a limit to how big you can scale in the Bay Area," Musk said at the time.
A spokesperson told Business Insider at the time that the move would provide employees with "more flexibility about where and how they work."
The database software company had been based in the Bay Area since being founded in 1977, and many employees remain.
Around 6,900 workers are assigned to California offices, which is nearly triple the number of Texas-based employees, Bloomberg reported.
CBRE
CBRE relocated its Los Angeles headquarters to Dallas in 2020.
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Brokerage giant CBRE moved its headquarters from Los Angeles to Dallas in 2020.
Although the Fortune 500 company was established in San Francisco over a century ago, CBRE has held large operations in North Texas since the 1970s.
In 2022, the real estate firm also opened a 131,000-square-foot office in Richardson, Texas.
AECOM
AECOM officially moved its HQ from California to Texas in 2021.
Igor Golovniov/SOPA Images/LightRocket via Getty Images
The Fortune 500 construction firm announced the relocation of its headquarters from Los Angeles to Dallas in 2021.
Various corporate leaders, including CEO Troy Rudd, joined over 1,200 employees based in AECOM's existing Texas offices.
The company said North Texas was a "talent magnet" for engineering and consulting, but that California would remain part of its growth strategy.
Space X
Elon Musk's SpaceX Starbase is in Boca Chica, Texas.
CHANDAN KHANNA/Getty Images
In July, Musk announced on X plans to relocate Space X from Hawthorne, California, to Starbase, Texas.
Musk said the move was in response to Gov. Gavin Newsom signing AB 1955, which prohibits schools from enforcing policies requiring parental notification if a student identifies as transgender.
The CEO called the law the "final straw," claiming that it would force "families and companies to leave California to protect their children."
X — formerly known as Twitter — is also set to follow suit, according to another tweet by Musk, which said that the platform's HQ would move from San Fransisco to Austin.
Charles Schwab
Charles Schwab's headquarters were formerly based in San Fransisco before being relocated to Westlake, Texas.
Smith Collection/Gado/Getty Images
Formerly based in San Francisco, Charles Schwab HQ moved to Westlake, Texas, in 2021 to reduce operating costs.
Chairman and founder Charles Schwab told Forbes that California's high taxes were a major factor in the decision, saying that "the costs of doing business here are so much higher than some other place."
McKesson
McKesson moved its HQ from San Francisco to Las Colinas, Texas in 2019.
Justin Sullivan/Getty Images
In 2019, the healthcare giant moved its HQ from San Francisco to Las Colinas, Texas.
Three years after the move, CEO Brian Tyler showed no regrets, and said that the city "was absolutely the right community for McKesson to call home."
"Since making the move to Irving, McKesson has quickly benefited from the deep, diverse talent pool in the Dallas area, the ease of travel, and the very engaged business community," he said.
from All Content from Business Insider https://www.businessinsider.com/texas-company-headquarters-hq-tesla-chevron-charles-schwab-california-economy-2024-8
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