Correct, but there must be some advantage for having a business in CA, because there is an abundance of large(King, Method, Baja Designs), medium and small off-road businesses here in CA.
You would think they could move to TX or FL or anywhere else in the US and save a ton of money. Hell the cost of electricity here would probably cover the cost of all utilities and rent in another state.
Maybe having the biggest population means a bigger customer base. Or being closer to shipping routes and supply chains.