Analysis: Shifting Tesla incorporation to Texas may not give Musk what he wants

February 02, 2024

"Change your state of incorporation out of Delaware before they lock the doors," Musk added later on Thursday. Companies have long preferred Delaware because of that certainty, something Musk may rattle by moving Tesla and inviting others to follow. "Texas law is vaguer." Musk had previously suggested reincorporating Tesla in either Texas or Nevada. However, he added that Texas courts are "not as inclined to second-guess business decisions as the Delaware courts are."