--- title: "More Musk-like 'Dexits' pose fresh threat to Delaware's corporation crown More CEOs fed up with Delaware and its powerful Chancery Court are going the way of Elon Musk, reincorporating their companies elsewhere and publicly airing their frustrations." type: "News" locale: "en" url: "https://longbridge.com/en/news/228436043.md" description: "More CEOs are considering moving their companies out of Delaware due to frustrations with its Chancery Court, following the example set by Elon Musk. Companies like Meta, Dropbox, and Pershing Square Capital Management are exploring alternatives, with some opting for states like Nevada and Texas. Delaware, historically favored for its corporate-friendly laws, saw a slight decline in Fortune 500 registrations in 2023, despite a record number of incorporations. Other states are actively promoting their business-friendly environments to attract companies away from Delaware." datetime: "2025-02-15T15:30:56.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/228436043.md) - [en](https://longbridge.com/en/news/228436043.md) - [zh-HK](https://longbridge.com/zh-HK/news/228436043.md) generator: "portal-rs" --- # More Musk-like 'Dexits' pose fresh threat to Delaware's corporation crown More CEOs fed up with Delaware and its powerful Chancery Court are going the way of Elon Musk, reincorporating their companies elsewhere and publicly airing their frustrations. More CEOs fed up with Delaware and its powerful Chancery Court are going the way of Elon Musk, reincorporating their companies elsewhere and publicly airing their frustrations. Over the past year, Meta (META), Dropbox (DBX), hedge fund Pershing Square Capital Management, Trade Desk (TTD), Fidelity National Financial (FNF), and Sonoma Pharmaceuticals (SNOA) have all floated plans to move their incorporations out of the "first state" — a nickname granted to Delaware because it was the first to ratify the US Constitution. These so-called "Dexits" would follow Musk-led companies Tesla (TSLA), SpaceX, the Boring Company, Neuralink, and X that left or are trying to leave Delaware. "Never incorporate your company in the state of Delaware,” Musk said on X in January 2024 after the Chancery Court’s head judge, Chancellor Kathaleen McCormick, struck down a 2018 Tesla shareholder vote approving his $56 billion performance-based compensation deal. “I think there is a lot of pressure on Delaware,” said University of Virginia Law School professor Michal Barzuza. “And I think the more moving, the easier it becomes for others to move.” Bill Ackman, Pershing Square’s CEO, went public with his decision on the social platform X, owned by Musk, saying he had chosen Nevada. "Top law firms are recommending Nevada and Texas over Delaware," Ackman wrote. For roughly the last century, Delaware has been the dominant place to incorporate because of its so-called corporate-friendly laws, specialized business courts, and ease of filing company documents. The state touts that it is home to more than two-thirds of all Fortune 500 companies. In 2023, Delaware hit a record 2 million total incorporations but saw a drop in the percentage of Fortune 500 companies registered there to 67.6% from 68.2% in 2022. Delaware generated $1.33 billion in incorporation revenue in 2024, about 22% of the state’s total revenue. Places like Nevada, Texas, South Dakota, North Carolina, Washington, and Wyoming that want some of this same revenue are trying to chip away at Delaware’s dominance with their own business-friendly strategies. ### Related Stocks - [DBX.US](https://longbridge.com/en/quote/DBX.US.md) - [PSHZF.US](https://longbridge.com/en/quote/PSHZF.US.md) - [SQ.US](https://longbridge.com/en/quote/SQ.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) ## Related News & Research - [Crypto platform on alert lists opens Hong Kong office, prompting calls for scrutiny](https://longbridge.com/en/news/302948940.md) - [Therma Bright Plans Private Placement of Up to $420,000](https://longbridge.com/en/news/302935448.md) - [Unbuzzd Wellness Inc. Raises $1.08M in Private Placement](https://longbridge.com/en/news/302933359.md) - [Denarius Metals files technical report for Toral mining project in Spain](https://longbridge.com/en/news/302935441.md) - [AI fever ignites a boom in thematic ETFs as fund managers hunt for their next big hit](https://longbridge.com/en/news/302963080.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**