When Elon Musk took to X last August with a blunt message “Companies should get the hell out of Delaware” it wasn’t just an offhand comment. The billionaire’s frustration with the state’s courts has triggered a wave of high-profile departures, and one state in particular is positioning itself as the biggest winner: Nevada.
Why Musk and Others Are Turning Away from Delaware
Delaware has long reigned as the “corporate capital of the world,” thanks largely to its Delaware General Corporation Law and its highly specialized Court of Chancery. Nearly two-thirds of Fortune 500 companies are incorporated there, enjoying its streamlined corporate governance and predictability.
But cracks are beginning to show. Musk’s fallout with Delaware began in early 2024 when a judge on the Court of Chancery struck down his multi-billion-dollar Tesla pay package. Outraged, Musk accused the court of bias and urged other companies to abandon the state. He soon shifted Tesla and SpaceX to Texas.
Other influential firms followed. Andreessen Horowitz, one of Silicon Valley’s most powerful venture-capital firms, announced its exit in July, citing Delaware’s “legal uncertainty.” Roblox, Dropbox, and Trump Media have also relocated.
Andreessen Horowitz even named Nevada as its new corporate home, praising the state for offering a clearer and less restrictive legal framework.
Nevada’s Pitch: Stability, Taxes, and Talent
While Wyoming, Texas, and Florida have also become popular alternatives, Nevada is aggressively seizing the moment.
Tech investor Bill Ackman said in February that his Pershing Square Capital Management firm would move to Nevada, echoing what he called a growing trend: “Top law firms are recommending Nevada and Texas over Delaware,” Ackman posted on X.
Nevada’s pitch is simple but powerful:
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No state income tax on individuals.
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No capital gains tax, making exits more lucrative.
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Business-friendly regulations compared to Delaware’s more complex legal environment.
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A commerce tax on companies with gross revenues over $4 million but no tax burden at the early startup stage.
“While the tax differences may not matter much for early-stage companies, at later stages those savings absolutely add up,” said Lindsey Mignano, founding partner of SSM Law PC, who represents emerging tech startups.
Beyond Incorporation: Attracting Physical Business
Nevada leaders aren’t content with being just a “mailbox state.” They want companies, offices, and talent to physically relocate as well.
“What it’s about is making sure that we’re not just getting those businesses to incorporate on paper, but we also want their physical assets here,” said Clark County Commissioner Michael Naft, whose jurisdiction includes Las Vegas.
To that end, Clark County is launching an innovation district, designed to attract tech firms, biotech startups, and next-generation industries to diversify Nevada’s economy, which has historically depended heavily on gaming, hospitality, and tourism.
“We’ve been methodical about it,” Naft said. “Our innovation district is about lifting up what’s already happening organically here and using it to attract like-minded businesses and individuals.”
Las Vegas Wants to Be More Than Tourism
For investors like Len Jessup of Desert Forge Ventures, based in Las Vegas, the corporate shift could be transformative.
“We’ve seen founders moving here a lot of them from California because it’s close by, but others are coming from all over,” Jessup told local press.
Jessup sees this trend as a way to buffer Nevada’s boom-and-bust cycles, which remain tied to the tourism industry. Las Vegas visitor numbers were down 11.3% in June compared with a year earlier.
“My goal is, 10 years from now, to have helped create tech and biotech companies here that diversify the economy,” Jessup said. He points to local successes like Switch, the AI, cloud, and data center giant, as models of the type of “recession-resistant” companies Nevada hopes to attract.
Delaware’s Grip Loosens but Not Without a Fight
Despite the noise, Delaware officials insist they are not worried. A spokesperson for the state’s Secretary of State office said its dominance as the corporate hub is not under serious threat. Its legal system remains unmatched in its specialization, and many lawyers and investors still prefer its familiarity.
Yet momentum is clearly shifting. As Musk, Andreessen Horowitz, and Ackman champion Nevada, other states are racing to carve out their share of America’s corporate map.
For Nevada, this is more than a legal migration it’s a chance to redefine its economy beyond casinos and conventions.
“We want people to understand we’re open to new ideas,” Naft said.
