Politics
Another Major Company Mulls Delaware Exit After Biased Anti-Musk Ruling
Walmart is considering a move away from Delaware as the location of its incorporation, becoming the latest and biggest firm to consider an exit from the state. A number of companies have left Delaware — which has been for years served as a headquarters for some of the nation’s largest corporations — after a state judge made a highly controversial ruling against Elon Musk and shareholders of his companies.
Last month, a group of “influential corporate attorneys” told Delaware lawmakers that several leading firms, including Walmart, were considering moving their legal homes out of the state. The story was first reported by Semafor.
The news has reportedly sent Delaware legislators reeling due to the small state’s reliance on a friendly business environment, which has been its reputation for decades. As of 2025, roughly two-thirds of America’s public companies are headquartered in Delaware.
With a population of just over one million people, Delaware derives more than one-third of its state budget from corporate legal fees. Its friendly corporation environment also provides a significant boon to the state’s economy.
Now, the state’s prosperity is under threat following decades of Democrat control and a catastrophic ruling from a left-wing judge. Back in January, Facebook parent company Meta confirmed that it was in talks to leave Delaware and relocate its corporate headquarters to Texas.
Elon Musk previously moved Tesla to the Lonestar State, while Meta board member Drew Houston reincorporated Dropbox in Nevada. Bill Ackman, a supporter of President Trump, is also planning to move his investment firm out of Delaware.
Elon Musk is the founder and CEO of Tesla and SpaceX. New York, US – 4 Mar 2024
The exodus comes after Delaware Chancellor Judge Kathaleen McCormick, a Democrat, ordered Musk to give up a compensation package valued at $55.8 billion, even though it was twice approved by shareholders. The ruling followed a January 2024 decision from McCormick that ruled the pay package was excessive and should be rescinded.
McCormick’s ruling sent shockwaves through the business world and spooked investors, as Delaware had spent decades building a reputation as a neutral corporate arbiter.
“Shareholders should control company votes, not judges,” Musk wrote in an X post after the ruling was announced. Another Musk repost stated: “Things to do in Delaware: 1) Leave.”
