Well, folks, it looks like Delaware is learning a hard lesson in what happens when you push businesses too far. Walmart—the biggest retailer in the world—is now considering ditching Delaware as its corporate home, joining a growing list of companies looking to escape the state’s suddenly shaky business environment.
For decades, Delaware has been the go-to place for corporate America, thanks to its business-friendly policies and predictable legal system. As of 2025, two-thirds of America’s public companies were incorporated there. That status has long been a financial lifeline for the tiny state, which pulls in over a third of its budget from corporate legal fees. But now? The house of cards is wobbling, and it all traces back to one disastrous decision.
At the center of the storm is Chancellor Kathaleen McCormick, a Democrat judge whose ruling against Elon Musk is causing a full-scale corporate exodus. Back in January, McCormick voided Musk’s historic $55.8 billion Tesla compensation package, even though Tesla shareholders had twice approved it. The ruling didn’t just hit Musk—it sent shockwaves through the entire business world.
Why? Because Delaware’s entire appeal has always been its reliable, neutral business climate. The state built its reputation on letting companies and shareholders run their own affairs. But with this ruling, a single judge unilaterally overruled the will of shareholders—something that left many corporate leaders wondering: Are we next?
Musk didn’t hold back after the decision. He blasted Delaware’s business climate, sharing a viral post that read:
“Things to do in Delaware: 1) Leave.”
And now? That’s exactly what’s happening.
Walmart is just the latest company eyeing the exit, but they wouldn’t be the first. The floodgates are already opening:
- Meta (Facebook’s parent company) is in talks to relocate its headquarters to Texas.
- Tesla already moved to Texas, long before this fiasco.
- Dropbox co-founder Drew Houston moved his company’s incorporation to Nevada.
- Billionaire investor Bill Ackman—a Trump supporter—is moving his investment firm out of Delaware.
For Delaware, this is a disaster of its own making. It’s a small state—just over a million people—and depends on corporate revenue. But under decades of Democrat control, the state forgot that companies have a choice. And now? They’re choosing to leave.
With Delaware’s self-inflicted wounds, Texas and Nevada are looking more attractive than ever. Texas, in particular, is quickly becoming the new corporate hub—no state income tax, pro-business policies, and zero tolerance for activist judges overruling shareholders.
Even before this ruling, Texas was already pulling businesses away from blue states. But after McCormick’s decision? The Lone Star State is wide open for companies ready to make the jump.
