California had just had its net population change going negative for the first time recently. There is a threshold where more businesses leave that it’s starting to reach. The cost of living doesn’t help along with crime. Climate change will also make the situation worse in the coming years, where we eventually lose temperate weather in exchange for forest fires. We’re already experiencing failing infrastructure like regular blackouts and issues with the bridges.
The state’s main saving grace for business is that non-competes are not legal in the state. It’s lucky that no other state is smart enough to do the same thing yet. If Oregon or Washington did it, it would be game over.