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California is home to some of the world’s largest and best-known corporations, from Silicon Valley to Hollywood. But in 2021, the number of companies that decided to leave for other states trended upward.

In the first six months of the year, 74 companies moved headquarters out of California, according to an August report by the Hoover Institution of Stanford University. That exceeded the total number of moves in 2020, the report said. The number was likely undercounted because not all relocations were public, especially for smaller companies, according to the report.

The majority of companies that moved, such as automaker Tesla, relocated to Texas. Tesla CEO Elon Musk cited the rising cost of housing in the Bay Area as a factor in moving headquarters from Palo Alto.

“It’s tough for people to afford houses, and people have to come in from far away,” Musk said at the company shareholder’s meeting, where he announced the move, according to CNBC. “There’s a limit to how big you can scale in the Bay Area.”

The Hoover Institution’s study identified “high tax rates, punitive regulations, high labor costs, high utility and energy costs, and declining quality of life for many Californians which reflects the cost of living and housing affordability” as reasons companies move from the state.

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“The data presented here show that headquarter relocations are accelerating substantially, with no sign of reversing course, reflecting a California business environment that ranks near the bottom of all U.S. states in many dimensions, including taxes, regulations, litigation costs, labor costs, energy and utility costs, and employee cost of living,” the report said.

Between early 2018 and June 2021, 272 companies moved headquarters to other states, according to the Hoover

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