Science and Technology

Tech companies from California moving to Texas


Silicon Valley is recognized as the epicenter of the tech industry for decades, starting in 1938 when Bill Hewlett and David Packard started tinkering in a Palo Alto garage. With the recent news of SpaceX and Tesla CEO Elon Musk […]

Tech companies from California moving to Texas
Tech companies from California moving to Texas

Silicon Valley is recognized as the epicenter of the tech industry for decades, starting in 1938 when Bill Hewlett and David Packard started tinkering in a Palo Alto garage.

With the recent news of SpaceX and Tesla CEO Elon Musk moving to Texas, Hewlett Packard Enterprise relocating its headquarters from the San Francisco Bay Area to the Houston area, and today’s announcement that Austin would now be home to Oracle, the classic California exodus to the Lone Star State has been brought to the forefront again.

Earlier this week, electric car-maker Tesla’s Elon Musk also said he relocated from California to Texas, though his companies including SpaceX will continue their major operations in California.

Another major tech giant, Hewlett Packard Enterprise that split from HP Inc in November 2015, has also announced its plans to shift headquarters to Houston, Texas.

It has been based in Silicon Valley since the company’s founding in 1939. Notably, American data analytics software company Palantir Technologies moved its headquarters from Palo Alto, California, to Denver, Colorado earlier this year.

In an interview with Axios in May, Alex Karp Palantir, Technologies CEO, said that he was against the “increasing intolerance and monoculture of Silicon Valley,” – indicating his decision to shift operations out of California.

Just how many companies are moving?

According to the U.S. Census Bureau, Texas is the most popular relocation destination for Californians and it has been for years.

In 2018, Texas had 86,164 new residents from California. That’s an increase of 36.4% compared to 2017, according to the 2020 Texas Relocation Report, which analyzes the latest migration data from the U.S. Census Bureau and U-Haul.

Texas ranked third in the U.S. for the number of residents moving out of state in 2018. Ironically, the most popular relocation destination for Texans was California with 37,810 people leaving


It’s hard to find another state that has residents with deeper pride than Texas. The people here wear the state flag on their clothes, cars, and porches like a badge of honor. Hell, a state representative is still trying to secede from the Union in 2020.

We love to defend our wide-open spaces, our Whataburger, and our freedoms. So for Texans, it’s hard not to see what’s to love, but to outsiders, there are no denying money talks.

The notable fact: Texas has no state income tax. And when you compare it to California’s income tax, which maxes out at 13.3% for anything above $1 million a year — the highest in the country — it’s a no-brainer for residents.

Plus, capital gains in the Golden State are taxed at a similar rate. While, Texas offers lower taxes, more relaxed environmental regulations, and lower cost of living. Something many companies based in California noticed.

Oracle and Hewlett Packard Enterprise aren’t the first to make the move east.

In recent years we’ve seen McKesson, Core-Mark Holding Co., Charles Schwabb, and Toyota move their headquarters to Texas. They all relocated thousands of employees with them.

One of Toyota’s main drivers to move from Torrance, California to Plano, Texas was housing costs, according to the Dallas Business Journal.

After having discussions with their employees, the organization found they were willing to move to “live the American Dream.”

Toyota calculated housing costs in Los Angeles County, where Torrance is located, are three times per square foot the cost of a house in Dallas-Fort Worth.

Expanding statewide, in 2019, housing costs in California were roughly 60% higher than in Texas, according to MIT’s living wage calculator. And Texans also spent about 5% less on everything else.

With these favorable numbers, it’s no surprise that a Facebook group dedicated to people thinking of moving from California to Texas has more than doubled in members in the last couple of years.


If we talk about the lifestyle then, it is mentioned that celebrities like James Van Der Beek are also relocating to Texas for its great lifestyle.

The actor announced his family was moving to Texas this fall. But he did not talk about the taxes or cost of living, but rather the lifestyle the Lone Star State provides.

Van Der Beek’s move comes just two months after podcaster and comedian Joe Rogan also relocated to the Austin area.

Rogan added on his podcast that he was looking to have a “little bit more freedom.”

He added that the COVID-19 pandemic showed him and others how overcrowded Los Angeles, where he was living at the time, had become.

“I think that where we live right here in Los Angeles is overcrowded and I think most of the time that’s not a problem,” he said on the Joe Rogan Experience podcast.

“But I think it’s exposing the fact that it’s a real issue when you look at the number of people that are catching COVID because of this overpopulation issue.”

It is also a fact that Texas is the second-most populous state behind California, with the Lone Star State having 10 million fewer people in 2019, according to the Census Bureau.

But the COVID-19 pandemic has hit the state just as hard, if not harder, than its West Coast counterpart.


But how do Texans feel about all these Californians coming to the state?

Many agree with what Gov. Abbott says, “don’t California My Texas.” The phrase is political, driven by the idea that the California migration will somehow turn the conservative state liberal.

But, Californians have been relocating to Texas in large numbers for the past decade. And despite claims that the 2020 election was going to see the Lone Star flip join a blue wave, that did not happen.

With its business-friendly regulations and incentives, affordable housing, lack of personal income tax, and wide-open spaces, Texas is still very much red and Californians will still keep on coming.

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