Texas and California have been dominating headlines for some time now. This time, the focus is on claims that companies are rapidly leaving California. A viral post and a widely shared video clip argue that high regulations and taxes are pushing businesses out, but a closer look shows a more layered reality, especially when it comes to big tech and large corporations diversifying beyond the state.
The post claims, “It’s been estimated that California has over 400,000 regulatory restrictions. That’s 100,000 more than the next closest state.” It uses this to explain why companies are allegedly shifting base.
It then lists a string of big names, saying, “Why are so many companies leaving California headquarters that have moved include
• Chevron
• SpaceX
• Charles Schwab
• Oracle
• Tesla
• A-Com
• Wells Fargo Wealth Management
• Neutrogena
• Palantir
• John Paul Mitchell
• Yamaha announced they’re leaving
• Public storage announced they’re leaving
• Even CBRE, the company that tracks companies that leave California, left California
In the last decade, hundreds, have taken their business out of state, taking thousands of jobs with them. Even if you talk to the independent business owner here, you’ll hear the same thing. It’s hard doing business in California -1 The astronomically expensive rent, labor, energy, and local taxes add a constant stream of inspections, fees, permits, and compliance requirements.”
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The clip reinforces this argument, linking regulation and taxation to economic slowdown. It says, “There’s been multiple studies that say too many regulations can stall on economy, entrepreneurship, and investment.” It also points to migration patterns, adding, “So let’s look at where a lot of these companies relocate to Florida, Tennessee, and Texas. What do all 3 of those have in common? Zero income tax. None.”
The comparison with California’s tax structure is also highlighted. “California has the highest marginal income tax in the country. A successful business owner here, their top income could be taxed 13.3%, which is a lot.”
But how much of this holds up?
Several companies mentioned in the post have indeed moved their headquarters out of California in recent years. Tesla shifted its HQ from Palo Alto to Texas in 2021, while Oracle moved from Silicon Valley to Austin in 2020. Charles Schwab relocated earlier to Texas, and Palantir Technologies moved its base to Denver. Chevron has also announced plans to relocate its headquarters to Houston, while CBRE Group and AECOM have shifted to Texas.
At the same time, what is emerging is not a one-way exit but a broader pattern. Companies, especially in tech and finance, are increasingly spreading operations across multiple states rather than staying concentrated in California.
Adding to this trend, Public Storage is relocating its corporate headquarters from Glendale, California, to Frisco, Texas, in early 2026, ending more than five decades in the state. However, the company is expected to retain a presence in California, highlighting how firms often move headquarters while continuing operations on the ground.
A similar but slightly different shift is seen with Neutrogena. The company is closing its Los Angeles headquarters and moving operations to New Jersey to align with its parent company, Kenvue Inc. This move is more about consolidation than regulation alone, and it has involved layoffs, with some employees offered relocation.
Another company that has made a clearer shift is John Paul Mitchell Systems, which moved its headquarters to Texas in 2025. The relocation is tied to expansion, with new investments, job creation and state incentives playing a role in the decision.
A more targeted move is underway at Wells Fargo. The bank is relocating the headquarters of its Wealth and Investment Management division to Florida, with senior executives moving as part of the transition. The decision reflects the appeal of lower taxes and a more business-friendly environment, though the company continues to maintain a broader presence in California.
Meanwhile, SpaceX has expanded heavily in Texas but still maintains a significant base in California, again pointing to a strategy of diversification rather than a complete departure.
What strengthens parts of the viral claim is broader economic data. Research shows that when companies do relocate, they often choose states with lower taxes and lighter regulation. Places like Texas and Florida, repeatedly mentioned in the clip, offer zero state income tax and comparatively simpler compliance structures, making them attractive for expansion and headquarters shifts.
Taxes, in particular, play a tangible role. California’s top personal income tax rate of 13.3 percent is among the highest in the U.S. There is also evidence of high-income earners moving out of the state, which matters because founders, executives and investors often influence where companies base their operations.
Regulation is another factor businesses frequently point to. Compliance requirements, permits, environmental rules and administrative processes can increase both the cost and time needed to operate. These concerns are often cited alongside rising costs of rent, labour and energy.
At the same time, the scale of the shift is often overstated in viral narratives. Only a small percentage of companies have actually moved their headquarters out of California over the past decade. Even among those that have, many continue to maintain large offices, employees and core operations within the state.
READ: Elon Musk criticizes $126 billion California high-speed rail price tag (April 9, 2026)
The reality, then, sits somewhere in between. High taxes and regulatory complexity are real concerns and do influence business decisions. But they are part of a broader mix that includes cost of living, workforce dynamics and post-pandemic work patterns.
Even the viral post reflects this contradiction in its closing line. “California is one of the best places, and everyone here big or small should have the opportunity to be successful.”
For now, California remains a global business hub. What is changing is not an outright exodus, but a gradual shift, where companies, including big tech players, are spreading their bets across states to balance cost, regulation and growth.