Billionaire entrepreneur Elon Musk doubled down on his Delaware boycott Thursday, declaring none of his companies would consider acquiring a Delaware-incorporated entity
Billionaire entrepreneur Elon Musk doubled down on his Delaware boycott Thursday, declaring none of his companies would consider acquiring a Delaware-incorporated entity.
What Happened: “None of my companies will consider acquiring a company incorporated in Delaware, as it is a guarantee of spurious litigation,” Musk wrote in a post on X, formerly Twitter.
He was responding to a corporate lawyer who suggested Wyoming as an alternative but acknowledged Delaware’s importance for startups seeking funding or acquisitions.
Why It Matters: Musk’s anti-Delaware stance stems from a recent legal blow in the state. Last month, Delaware’s Court of Chancery invalidated his $56 billion pay package at Tesla. The judge deemed the package excessive and criticized the board’s handling of the approval process.
Following the ruling, Musk urged companies to avoid Delaware incorporation, calling it detrimental to shareholder interests. He advocated for states like Nevada and Texas instead.
Musk’s Companies Follow Suit: Earlier this month, Musk incorporated his neurotechnology company Neuralink in Nevada. He then announced SpaceX‘s transition from Delaware to Texas on Wednesday.
However, Tesla’s fate remains undetermined. Musk announced a shareholder vote to move the company’s incorporation to Texas, but this applies only to the state of incorporation, not its headquarters, which already resides in Texas.