Why Elon Musk is breaking up with Delaware

为什么埃隆·马斯克要与特拉华州分手

Behind the Money

2024-02-14

15 分钟
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A Delaware court recently struck down Elon Musk’s $56 billion Tesla pay package. Soon after, Musk took to his social network X and offered some advice: “Never incorporate your company in the state of Delaware.” But will anyone take it? The FT’s Wall Street editor Sujeet Indap explains how Delaware became the favourite place for big companies to incorporate and why that’s unlikely to change.  Clips from BBC, WFAA - - - - - - - - - - - - - - - - - - - - - - - - - -  For further reading: Can Elon Musk derail Delaware? Texas is throwing down a legal challenge to Delaware Delaware versus Elon Musk - - - - - - - - - - - - - - - - - - - - - - - - - -  On X, follow Sujeet Indap (@sindap) and Michela Tindera (@mtindera07), or follow Michela on LinkedIn for updates about the show and more.  Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.
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  • If you wrote down the names of all the publicly traded companies that are part of the Fortune 500,

  • cut them up and threw them into a hat,

  • chances are if you pulled one out,

  • that company would be incorporated in the second smallest state in America.

  • I'm talking about Delaware.

  • Of the 470 public companies in the Fortune 500,

  • more than 300 of them are incorporated in Delaware and the likes of Disney or Amazon or Google,

  • Microsoft.

  • That's the FT's Wall Street editor, Sujit Indap.

  • Big companies, wide shareholder bases with famous investors.

  • They're almost always going to pick Delaware.

  • But a couple of weeks ago, there was one very large shareholder who was not happy with Delaware.

  • Now,