More businesses moving to Austin because of high risk tolerance, mayor says
Tesla, Oracle among companies leaving Silicon Valley for Texas
As more companies, particularly innovative tech companies, move to Austin, Texas, the city’s mayor says it’s the perfect place for risk-taking entrepreneurs.
“Companies are coming here because the people that they want to have work for them want to live in this city,” Mayor Steve Adler told FOX Business' “Varney and Co.” “It's entrepreneurial and innovative, pro-business. It's low tax. But most importantly, I think it has a really high tolerance for taking risks.”
Adler said a high tolerance for risk is what leads to innovation.
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Tesla, Oracle, Charles Schwab, AT&T and McKesson are included in the list of companies that have or are planning to relocate to Texas. Additionally, some major U.S. stock exchanges are considering relocating their data centers from New Jersey to the Lone Star State amid the threat of higher taxes.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 345.16 | +12.27 | +3.69% |
| ORCL | ORACLE CORP. | 184.84 | +2.14 | +1.17% |
| SCHW | THE CHARLES SCHWAB CORP. | 82.76 | +0.16 | +0.19% |
| T | AT&T INC. | 23.16 | -0.11 | -0.47% |
| MCK | MCKESSON CORP. | 628.50 | +2.12 | +0.34% |
As many leave California for Texas, Adler said the culture of tolerance could be a draw for some, especially in contrast to California’s reputation for political correctness.
“There’s a wide sense of views here,” the mayor said. “I think that's important.”
However, an influx of new people moving to a city can bring infrastructure issues, such as the transportation system becoming overwhelmed. Adler said traffic has been a problem for Austin and pointed to mobility and affordability as “two big challenges.”
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“This past November, we approved a measure citywide with nearly a 60 percent vote to really revolutionize how we do mobility in the city,” he said. “And we're doing everything we can to increase the supply of affordable housing.”
These are the challenges that come with being a popular city, Adler added.
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Amid the trend of many Americans moving from blue states to red states, some are worried new residents will bring liberal policies, such as high taxes, with them.
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“I'm not looking that far into the future at all. We have a formula that's working here right now in Austin,” Adler said in response. “But affordability is our big issue associated with that. And we'll just work through the ups and downs of this. But right now, we're on a good trajectory.”