Why Are So Many Fortune 500 Companies Ditching California For Texas?

Chevron, a California staple since 1879, has announced it will move its headquarters to Texas by the end of 2024.

Get our free mobile app

The Big Move

Chevron is joining a growing number of companies shifting from California to Texas. This decision follows a lawsuit filed by California against Chevron and other energy firms, accusing them of downplaying the risks associated with fossil fuels. Texas Governor Greg Abbott has welcomed Chevron, referring to Texas as its “true home” on social media.

The Trend

According to CBRE, which itself moved from Los Angeles to Dallas in 2020, eight Fortune 500 companies have relocated from California between 2018 and 2023, with ten choosing Texas as their new home. Chevron's move aligns with this trend, reflecting Texas's appeal due to lower taxes, fewer regulations, and a more business-friendly environment.

The Impact

Chevron’s relocation will involve shifting its headquarters from San Ramon to Houston, where it already employs about 7,000 people. The company believes this move will enhance collaboration and engagement with executives, employees, and business partners. Other major companies like Tesla, Oracle, AECOM, and Charles Schwab have also made similar moves to Texas recently.

Get our free mobile app

In summary, Chevron's move underscores a significant shift in the corporate landscape, with Texas emerging as a prime destination for major companies seeking a more favorable business climate. This migration is poised to bring economic growth and job creation to Texas while posing challenges for California’s economy.