In 2024, Elon Musk criticized Delaware's judicial system after a judge denied his multi-billion-dollar pay package approved by Tesla's board. He urged companies to leave the state, claiming that recent court rulings undermined its business-friendly reputation. Following Musk's lead, companies like Andreessen Horowitz, Roblox, and Dropbox moved their incorporation to states like Texas and Nevada. Despite Musk's criticism, Delaware remains the home to over 2.1 million businesses, supported by its favorable corporation laws, though some businesses are seeking alternatives for privacy and tax benefits.
"Companies should get the hell out of Delaware," Musk wrote last August.
Delaware is generally considered a business-friendly state with a robust corporate legal system.
VC firm Andreessen Horowitz is the most recent high-profile company to exit Delaware.
Texas, Nevada, Florida, and Wyoming have become preferred destinations for some business leaders in a shift that some have dubbed 'Dexit.'
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