Exactly, so at the end they will screw you, most of them while smiling and a few like Musk with an angry/scowling face.
As they say “It’s business not personal”
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I will prefer getting screwed by Musk than other backstabbers.
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Looks like they are just fishing for tax benefits? That’s what a failing business does.
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Its not just tax benefits. They are moving to a business friendly place where all future growth will happen. In rising tide even failing businesses rise and in low tide everyone falls. Its common sense.
First, clearly tax benefit both personally and corporate (CA is too high)
Like most states, Texas subjects corporations to its standard business tax, the franchise tax. As with all businesses, the no-tax-due threshold and E-Z Computation rules apply to corporations. At 1%, the tax rate on Texas corporations ranks very low nationally.
They simply reduce from 8.84% to 1%
Elon Musk moving to TX is the same reason. If he holds even a single home in California, he can not claim as taxes base.
They are moving to a business friendly place where all future growth will happen => This is not the real reason. Oracle is established and going down on revenue unlike other companies.
I do not know whether you were here in year 2000 period, it was Sun Microsystems, Oracle and Cisco made many millionaires peak of Y2K, now Sun is no more, oracle and cisco is winding down selling all assets and moving to Texas (oracle) and RTP (cisco).
By doing that, they sell the billions of real estate assets and buy cheap land other places. They are outdated to SFBA now. They are converted real estate assets into cash (holding cash) and also reducing corporate taxes.
It is a transformation happening every downturn in bay area.
A question to ask is whether these companies are taking the high-tech eco-system with them.
The valuable thing still in the bay area is network of VCs. If VCs decide to move, there is not stopping.
Well growth companies are also moving. Tesla Palantir Dropbox …
Oracle is a dinosaur that stopped mattering 10 years ago. Looks like they move HQ just for Larry to save on his tax bills. No other senior execs or rank and file employees are moving. Palantir is a consulting firm pretending to be selling software. Tesla is a manufacturing company so it makes sense for them to expand in Texas. For Dropbox it seems it’s only one guy moving out. It’s even less than what ORCL did. HQ still stays.
Look, I don’t think SV and SF will have all the ass-kicking tech firms in the world. Obviously we have a bunch of them in Seattle and NYC. While these “firms moving out” make great sensationalistic headlines I like to go deeper to see what’s really going on. Besides, after this election I’d love to see more Californians move over to Texas. Good things are going to happen there in 2028.
For each company, mostly tax is the reason, esp for founders to pay hefty billions to California.
Elon and Peter T ( palantir founder ) are same set of multi billionaires. They want to save billions legal way.
Even if and I have higher cash, we always ask CPA hoe to reduce tax or save it?
For billionaires, there are plenty of tax lawyer and tax cpas to help.
Are you arguing from both sides of your mouth? According to your thinking, in order to progress in career, need to be near the boss, and be seen by the boss. Even if those guys have not moved yet, they soon be.
Elon Musk has the habit of trial balloons. Is a matter of time that Fremont factory will be closed and its manufacturing capacity moves to the new Austin factory.
Moving to Austin was initially just a trickle, now is in bigger waves and you still see nothing? My advice is try to get some rentals near the Domain.
Jeff Bezos, richest person in the world, lives in Seattle.
Elon Musk, 2nd richest person in the world, lives in Austin.
Bill Gates, 3rd richest person in the world, lives in Seattle.
What say you? Workhorses live in SF?
Workhorses live in SF ==> Right sentence is “Earning horses live in SF”
Do you know Larry Ellison invested 3B in TSLA around IPO time and he is also board member of TSLA?
He is also voting oracle to move to Texas. All earned people (and expect no further growth) moves to tax havens like Seattle and Texas…etc
NY is finance capital and CA is tech capital, where people are generating wealth and earning. Both governments are forcing big state taxes which the earned people do not like and move for rest of their life.
Companies that don’t innovate anymore can easily move to other states to minimize taxes, etc.
Even companies that do innovate like Apple put non-innovative parts of the company like support in Austin.
I will worry if Tesla or Salesforce moves their engineering HQ elsewhere.
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It’ll happen in a few years.
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It has been happening every downturns 2000, 2008 and now 2020…as usual
Both 2000 and 2008, SFBA population was reduced, real estate tanked…etc, then recovered. 2000 was mass exodus of population from SFBA, but you compare the real estate between 2000 and now.
Real reason: Companies that don’t innovate anymore can easily move to other states to minimize taxes, etc.
The BA will survive and thrive. These billionaires only care about making money. Don’t care where they live. They are indoors 24/7 counting their money.
They don’t need anymore. Time to enjoy life in sunny Ca. I was farming yesterday. Skiing today.
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Lary Ellison also helped Steve Jobs i think on his return. He very connected person. he exactly knows which firm will be supported to become mega billionaire. it has nothing to do with underlying business.
The bottom line is Califronia is bankrupt with no real business and skills left to diversify economy… so its taxes more and more depended on RSU and stocks of high paid people in virtual firms.
Real estate is prices are 2 times vs year 2000 if House is not remodeled. but thats 20 year of inflation. Try remodel home now. my theory of high water rates will coming sooner if population spread out continues from dense urban centers.
Eventually it will happen. Writing on the wall is too faint, many can’t see them.
No coffin no worries 
唔見棺材唔流眼淚
While I agree that many people conveniently forgot to include re-modeling in their comparison, I think land cost did jump up by 3-4 times since 2000.
I am happy for Texas. The more Californians moving there the better. 
Silicon Valley’s competitive position has been improved by the pandemic. Extra WFH days means less traffic, bigger houses and better quality of life. It’s like SV expands its territory all the way to Sac. The exorbitant land costs is less of an issue because companies need less office space.
SV handles the cutting edge innovation and birthing world beating world class tech companies, while second tier Austin handles the grunt day to day work is a great model.