More Companies Consider Leaving Delaware After Tesla
14th May 2025
In the coming weeks, investors in nine public companies worth at least $1 billion each will vote on proposals to ditch Delaware as their place of incorporation, potentially denting the state’s longtime reputation as Corporate America’s capital, Reuters has found.
Five companies with a stock market value of at least $1 billion have moved their legal home out of Delaware since last year, in what some have nicknamed “Dexit.” Tesla made a high-profile move to Texas last year and in April, President Donald Trump’s social media company Trump Media & Technology , which owns the Truth Social platform, decamped to Florida.
Most of the companies are dominated by a significant shareholder or founder. Delaware judges have expanded the court’s most stringent legal standard to a growing range of situations involving controllers, increasing the risk of shareholder lawsuits.