With lockdowns bearing down on businesses in Democrat states, companies are flocking to Texas to start fresh.
Tesla, Charles Schwab, and Oracle are all making the move to Texas in light of California’s scathing lockdown measures.
In an interview on Saturday, Texas Governor Greg Abbott (R-Texas) praised Oracle’s decision to move house. He also commented on the mass influx of businesses moving their base-of-operations to the Lone Star State.
“This has turned into an absolute tidal wave,” Abbott said. “Remember, we just had the announcement about Hewlett-Packard Enterprise and we also just had the announcement of Fortune-500 company CBRE moving its headquarters to Texas.”
A spokesperson for Oracle said its new Austin headquarters will position the company for growth as well as provide personnel flexibility amid the pandemic.
Coronavirus lockdown conditions in Texas have been relatively light compared to Democrat states.
“We’re getting a lot of investment leaders from the New York region, New Jersey region, and California region,” Abbott noted. “That’s just the investment sector.”
Governor Abbott added his state’s business-friendly environment seems to draw companies in and away from states with exorbitant tax rates.
“Cost of business means a lot,” he mentioned. “No income tax means a lot, but also the freedom to operate without the heavy hand of regulation means a lot.”
The Republican state provides a larger sense of independence, which is a major plus in pandemic conditions.
“They [companies] are looking for a state that gives them independence, autonomy, and the freedom to chart their own course,” the Texas governor stated. “Those are word choices used by people like Elon Musk.”
He emphasized Musk is elated to be in the Republican state and that the two converse on a weekly basis.
The pandemic has also shown companies that remote work is much more feasible, especially with advancements in video-conference.
“The times of COVID have exposed a lot,” Abbott said. “They’ve exposed the ability that you really don’t have to be in Manhattan, for example, in order to be involved in the trading business or the investment business.”
Over half a dozen companies have announced plans to move out of their more ‘left-leaning’ states and into the Republican south.