Texas is quickly becoming the central hub for big business. The larger-than-life state is attracting businesses from every sector including Tesla, Apple, and Latin American IT firm SONDA, which recently opened its headquarters in Dallas.
Automaker Tesla made news when it recently filed paperwork with the Secretary of State’s office to reincorporate the company in Texas. The company was once incorporated in Delaware, but reportedly CEO Elon Musk asked shareholders to vote on moving Tesla to the Lone Star State after a Delaware judge denied a $56 billion compensation package.
In a CNN report, Musk noted that affordable housing and better commute times played a role in the company’s decision.
The technology and automotive sectors aren’t the only industries vying to take root in the Lone Star state, a new Texas-based Stock Exchange is also hoping to capitalize on Texas’s business growth.
Big investors including BlackRock and Citadel Securities, TXSE Group, Inc. announced its plans to start its stock exchange in Texas., which has raised $120 million, per the report. The company plans to impose fewer rules and regulations than its New York-based rivals.
Texas Energy Surpasses Projections
Texas is leading the nation in the energy sector as well. According to The Energy Information Administration, it’s leading the nation in oil and gas extraction and refining. In a report released on June 11, the federal agency suggested that the U.S. will set records in crude oil production in 2024 and 2025 due to increased industry efficiency.
According to a new analysis published by the Texas Oil & Gas Association, Texas’ oil and natural gas industry broke production records in May, producing a record-high 5.7 million barrels per day (mb/d) of crude oil.
Capital markets’ experts forecast the Texas oil and gas market shows no sign of slowing, with equally strong projections throughout the year.
“Fracking has been fantastic for US oil production, and Texas is by far the biggest beneficiary. Many people don’t realize just how large the improvement has been over the last decade. I think the energy sector, especially in Texas, will continue to see growth trends over the next decade- plus,” said Vijay Marolia, Managing Partner and Chief Investment Officer of Regal Point Capital.
Marolia forecasts other changes likely to occur within the oil and gas industry as we approach 2025.
“I think Texas will continue to benefit not only from the natural resources but also the intangible resources such as a very business friendly regulatory environment. Improvements in technology should help increase production and that will help mitigate the inflation we’re seeing and will continue to see,” said Marolia. “The wild card will be the regulation—that’s why the upcoming election will be pivotal.”
Texas’s Economic and Employment Growth Continues
At least 139 firms moved their headquarters to Texas from 2020 to February of 2024, 40% of them relocating from California. Not just the companies are moving, people are coming to the state in search of employment and affordable housing.
In a press announcement, Governor Greg Abbott celebrated Texas after May employment data was released. In the report, Texas came out on top, smashing all previous historic highs for total jobs and the number of Texans working.
“Texas is where the future is building,” said Governor Abbott. “That is why Texas continues to grow jobs and outperform the nation in annual job growth. With America’s Best Business Climate, our strong and growing workforce, and an unwavering focus on investing for the future, we see more Texas businesses innovating and more hardworking Texans forging a path to prosperity. Texas is where today’s products are made and where tomorrow’s technologies are born. We will continue to lead the nation as we build a bigger, better Texas for decades to come.”
