More Musk-like 'Dexits' pose fresh threat to Delaware's corporation crown

Published On Feb 15, 2025, 10:30 AM

Recent high-profile exits from Delaware's corporate jurisdiction are causing concern for the state’s long-standing dominance in business incorporation. Influential companies and hedge funds, including Meta, Dropbox, and Pershing Square, are moving their incorporations to states like Nevada and Texas, citing frustrations with Delaware's Chancery Court and rulings that they perceive as unfair. This trend, termed 'Dexits', is fueled by high-profile figures like Elon Musk who have criticized Delaware’s corporate laws. As more companies leave, this could potentially threaten Delaware's position and revenue from incorporation fees, which significantly contribute to the state's economy.