EDITORIAL: HP Enterprise, Musk moving from California to Texas

“Go West, young man” encapsulated the pioneering spirit of countless Americans during the 19th century. Today, however, many of America’s business trailblazers are looking East.

Hewlett Packard Enterprise recently announced that it is moving its headquarters from Silicon Valley to Texas. On Friday, Oracle did the same. The companies said the move would lower their costs. They may also save money on labor. Employees will find more affordable homes there, too.

Hewlett Packard Enterprise isn’t the biggest technology company, but it has deep ties to the Bay Area. Its two founders started its parent company, Hewlett Packard, in a Palo Alto garage. Hewlett Packard Enterprise spun off from that company in 2015.

The decisions by Hewlett Packard Enterprise and Oracle should set off alarm bells in California, especially because these aren’t the only recent, high-profile departures. On Tuesday, Telsa CEO Elon Musk announced that he also had moved to Texas. His private foundation, which had been in California, moved too. It had more than $300 million in assets in 2018.

In May, Musk had a high-profile dispute with California officials who wanted to keep a Tesla factory shuttered because of the coronavirus. Mr. Musk threatened to move Tesla headquarters because of the restrictions. California Assemblywoman Lorena Gonzalez, a Democrat, used an expletive to denounce Mr. Musk in a tweet. He replied, “Message received.”

He didn’t mince words on his way out the door.

“If a team has been winning too long, they do tend to get a little complacent, a little entitled, and then they don’t win the championship anymore,” he said in an interview with The Wall Street Journal. “California has been winning for a long time, and I think they’re taking it for granted a little bit.”

California isn’t the only state driving high-profile companies away with high taxes and onerous regulations. Earlier this month, news broke that Goldman Sachs Group is considering leaving New York for Florida or Texas. If Wall Street firms leave Wall Street, New York is going to be in a world of hurt.

California has a host of natural advantages — access to the Pacific Ocean, incredible weather and the benefits that come with being one of the largest states. Nevada can’t replicate those. But it can duplicate California’s anti-business practices, which are now driving companies out of that state. In the past legislative session, Nevada Democrats had some success doing just that.

As the fleeing businesses indicate, Nevada elected officials should view California’s governmental excesses as a cautionary tale, not a road map to follow.