Larry Ellison, the CEO of Oracle, is Tesla’s second-largest individual shareholder after Musk.
It’s possible that the smart money is banding together and sticking it to California.
Oracle is transferring some operations to Texas, joining Tesla and Hewlett Packard Enterprise, according to a filing with the Securities and Exchange Commission late Friday.
Oracle has relocated its corporate headquarters from Redwood City, California to Austin, Texas, to allow for more flexibility in employee work location. We believe that by making these changes, Oracle will be better positioned for growth and will be able to give our employees more flexibility in terms of where and how they work. Many of our employees can choose their office location and work part-time or full-time from home, depending on their job.
Furthermore, we will continue to support Oracle’s key hubs throughout the world, including those in the United States, such as Redwood City, Austin, Santa Monica, Seattle, Denver, Orlando, and Burlington, among others, and we anticipate to add more locations in the future. We plan to significantly improve our workers’ quality of life and output by employing a more modern approach to work,” according to the SEC filing.
While the move indicates that working remotely is here to stay, it also indicates that California may be losing its luster.
Larry Ellison, the CEO of Oracle, is Tesla’s second-largest individual shareholder behind CEO Elon Musk, and he sits on the board of directors. After exploring other sites, including Tusla, Oklahoma, Tesla decided on Austin for its new manufacturing last summer.
Musk chastised California earlier this week for fueling a business migration, comparing the state to a winning sports club that has become complacent.
California, like a successful sports team that “has been winning for a long time,” has taken inventors for granted, Musk said, adding, “You have a forest of redwoods, and the small trees can’t flourish.”
Musk stated this in a Wall Street Journal interview published on Tuesday. Musk claimed in the interview that he relocated to Texas after becoming dissatisfied with California.
Hewlett Packard Enterprise announced its headquarters move to Houston earlier this month as well.
HPE has decided to move its headquarters from San Jose, California, to Houston, Texas Houston
employment base, and it’s where the business is presently building a state-of-the-art new campus to attract and retain future diverse talent. HPE will combine a number of sites in the Bay Area to its San Jose campus, which will remain a strategic hub for innovation. This change will not result in any layoffs.”