What does Musk's 'Dexit' from Delaware mean for the future of US business?

A 'billionaires' bill' could limit shareholder lawsuits

Illustration of Delaware state filled with dollars and a top hat
Businesses 'must consider whether Delaware is worth the drama'
(Image credit: Illustration by Stephen Kelly / Getty Images)

Delaware's capitalist-friendly approach to taxes and regulation has long made it a lynchpin of the American economy: More than 1.5 million businesses from around the world are incorporated in the state. But Elon Musk's "Dexit" to Nevada could change all that, and state legislators are scrambling to respond.

Musk moved Tesla's incorporation to Nevada after a Delaware judge ruled last year that his $56 billion pay package "should be rescinded," said CNBC. He did not stop there. The world's richest man "smeared the judge" in social media posts and encouraged other business leaders to follow him out of the state. "Never incorporate your company in the state of Delaware," Musk posted on X in 2024. Meta and Walmart, among other high-powered corporations, are "reportedly considering leaving."

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Joel Mathis, The Week US

Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.