Space X CEO Elon Musk is packing his company and heading to Texas after being shooed out of Delaware by a state judge. Last month, Musk posted on X to encourage anyone who owns a business in Delaware to relocate, and stated on his own social media platform X, “I recommend moving to another state as soon as possible.”
For context, Delaware decided to rule in favor of a Tesla shareholder who (because of their experience working for Musk) had the right to file a claim in 2018 that challenged Musk’s pay. This means Musk’s revenue from Tesla remains in jeopardy, and it is possible that in a short time he won’t be the world’s richest man anymore. This entire situation makes Musk look childish and unprofessional.
It is on record that Delaware is a highly desirable place to start a business; actually, it might just be one of the best places. According to CNBC.com, Delaware is seen as so friendly to corporations that “more than 60% of Fortune 500 companies are incorporated in the state, including Google parent company Alphabet, Amazon, CVS, and CNBC’s parent company Comcast.” Therefore, the question is…Why is Musk making it so complicated?
No matter if you support Musk or not, this is the Man With a Plan. Since he already has affiliates in Texas, he is going to be able to build a $100 million factory in Brownsville. It is clear that good ol’ Texas just can’t get enough of Musk and his plans to strengthen his company without Delaware getting in his way.
Bik Bose • Mar 8, 2024 at 11:37 pm
Political judges are bad for business in Delaware.