NY Times Magazine on the Race to the Bottom: Delaware and Texas

Elon Musk's Clash With Delaware Has Enormous Stakes

Elon Musk got into a fight with Delaware, and the consequences for American business is bigger than you might think, writes Michael Steinberger in the New York Times Magazine . For a century, tiny Delaware has been the legal home for most big US companies, its Court of Chancery serving as...

NY Times Magazine on the Race to the Bottom: Delaware and Texas

Shareholder litigation is the enforcement mechanism, and over the decades, Delaware has established such a rich and influential body of case law that it has become the de facto arbiter of U.S. corporate law.But thanks in no small part to the wrath of Elon Musk, that may be changing. In 2024, a Delaware court struck down a compensation package worth an estimated $55 billion that Tesla, the electric automaker, had awarded Musk, its chief executive…