The Big Loser in Tesla’s Shareholder Vote Is Delaware – WSJ

Tesla’s reincorporation in Texas is about much more than saving the electric-car juggernaut $250,000 a year in state fees. It is an attempt by Elon Musk to loosen Delaware’s grip on American corporations.

About two-thirds of S&P 500 companies—regardless of where they are actually based—are incorporated in Delaware, largely because the tiny state has specialized courts that handle business matters and stacks of legal precedents for addressing such disputes.

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By voting to leave the First State, shareholders could be ratifying the view among some that Delaware’s shareholder protections have gone too far, some legal experts said. An alternative, however, is that Musk is simply so important that investors are willing to take a chance on Texas.

Source: The Big Loser in Tesla’s Shareholder Vote Is Delaware – WSJ