A select group of billionaires and renowned companies recently attempted to shift the narrative surrounding Delaware, suggesting its prime days are behind it.
Elon Musk ignited conversations in 2024 with his bold declaration on X: “Companies should get the hell out of Delaware.” Despite his assertions and several negative public statements about Delaware’s legal landscape, the opposite trend has emerged.
Contrary to fears of decline, Delaware peeled back the layers to reveal significant growth in 2025, as highlighted by Andrew Verstein, the author of the Corporate Census. His recent report underscores a compelling surge in corporate formations within the state.
The Corporate Census, a comprehensive database documenting corporate registrations across the U.S., serves as a crucial resource in tracking these trends. After nearly two years of data collection, Verstein’s findings present a surprising twist in the narrative.
Even amidst a storm of negative press throughout 2024 and 2025—primarily fueled by companies like Musk’s Tesla and SpaceX relocating their registrations—Delaware has stood resilient. Musk’s shift was partially influenced by a court ruling on his multibillion-dollar pay package, leading to amplified scrutiny of the state’s judicial decisions.
Despite the tumult, Verstein’s report reveals that “Dexit,” as the supposed trend was labeled, is merely a myth. Instead, Delaware has fortified its position as the leading hub for incorporation.
The little ‘Dexit’ that didn’t
In his report, Verstein noted a significant uptick in Delaware’s corporate formations at the beginning of 2025. The evidence indicates a clear shift in Delaware’s standing—about 30% more corporations were established in Delaware in 2025 compared to the previous year.
Contrary to expectations, the surge in formations is attributed not to a decline in other states but rather to a newfound allure surrounding Delaware. Verstein indicates that this uptick occurred against a backdrop of flat national incorporation levels.
The exact reasons for this growth remain somewhat enigmatic. Some speculate that recent legislative amendments—designed to enhance corporate governance and clarify shareholder rights—have bolstered confidence in Delaware’s legal framework.
Additionally, Verstein cites external influences, including the change in administration after the 2024 elections, which may have contributed to Delaware’s appeal for corporations seeking stability.
In summary, the data contradicts the more alarmist narratives surrounding “Dexit.”
Delaware’s not feeling the heat
Delaware’s government remains steadfast, asserting its dominance in the corporate sphere.
“Delaware continues to lead the world as the premier home for business,” a spokesperson from the Secretary of State’s office declared. “The data speaks for itself — Delaware’s corporate franchise is flourishing, thanks to the unmatched capabilities of the Delaware Division of Corporations.”
In an interview, Secretary of State Charuni Patibanda-Sanchez dismissed concerns stemming from political rhetoric, stating, “We don’t believe Delaware’s status as the corporate capital of the world is under significant threat. States will always be vying for a piece of the action.”
### 💡 Hustle Verdict
Our take is clear: Delaware remains a formidable player in the corporate world despite recent critiques. We believe entrepreneurs should view the state’s resilience and growth as an opportunity, reinforcing the value of strategic incorporation in a stable environment. The bottom line is that as competition among states intensifies, Delaware’s strengths provide a unique advantage for savvy business owners looking to thrive.
