Behind the Money Why Elon Musk is breaking up with Delaware
Feb 14, 2024
Exploring Delaware's popularity for company incorporation among Fortune 500 companies, particularly Elon Musk's frustration after a Delaware court annulled his $56 billion pay package from Tesla. The significance of Delaware's Court of Chancery in attracting companies, ruling on shareholder lawsuits, efficiency in M&A and proxy fights, and its historical roots. The implications of Elon Musk moving Tesla's incorporation to Texas and the challenges for the Texas Business Court. Elon Musk's decision to relocate Neuralink's incorporation to Nevada and its implications for Delaware and Nevada's reputation for controlling shareholders.
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Transcript
Episode notes
1 2 3 4 5
Introduction
00:00 • 2min
Delaware's Court of Chancery
01:50 • 5min
Why Elon Musk's Situation Led to a Change in Scrutiny and the Decision to Move Tesla's Incorporation
07:09 • 2min
Tesla's Move to Texas and the Texas Business Court
09:19 • 3min
Elon Musk's decision to move Neuralink: Implications for Delaware and corporate law
12:42 • 4min