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Elon Musk’s ‘Dexit’ sparks corporate exodus, threatens Delaware’s business throne

MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

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Delaware’s corporate grip seems to be slipping. Frustrated CEOs, echoing Elon Musk’s frustrations with the state, are ditching the state’s Chancery Court and reincorporating elsewhere—a movement that has been colloquially dubbed as “Dexit.”

The “Dexit” Exodus:

  • Meta, Dropbox, Pershing Square, Trade Desk, Fidelity National Financial, and Sonoma Pharmaceuticals have drafted up plans to potentially exit Delaware and incorporate somewhere else, as noted in a Yahoo Finance report. 
  • These companies, if they do leave, would join Elon Musk’s Tesla, SpaceX, Boring Company, Neuralink, and X.
  • The trend has been informally dubbed as “Dexit.”
  • Musk’s companies left the state after Delaware Judge Chancellor Kathaleen McCormick struck down the CEO’s 2018 pay package after all its targets had already been achieved.

Musk’s warning: 

  • Musk has been very open about his disdain over Delaware’s courts. “Never incorporate your company in the state of Delaware,” he posted on X in January 2024. 
  • Musk’s frustration with Delaware became even more evident after Chancellor McCormick refused to consider the decision of TSLA shareholders, who ratified the CEO’s pay package during its 2024 Annual Meeting of Stockholders.
  • Tesla shareholders have voted to reincorporate the company in Texas instead of Delaware during its last annual meeting.

Experts Weigh In: 

  • “I think there is a lot of pressure on Delaware,” said University of Virginia Law School professor Michal Barzuza. “And I think the more moving, the easier it becomes for others to move.”
  • Pershing Square CEO Bill Ackman was among the entrepreneurs who have opted to leave Delaware. In a post on X, he announced that he is leaving the state for Nevada.
  • “We are reincorporating our management company in Nevada for the same reason. Top law firms are recommending Nevada and Texas over Delaware,” Ackman wrote.
  • Coinbase chief legal officer Paul Grewal shared similar sentiments in recent weeks.
  • “I’ve tried cases to Delaware juries, enjoyed friendships with Delaware judges, and taught classes to Delaware lawyers. The Hotel DuPont is a familiar stay, and I’ve bought too many shirts and ties to count at Wright & Simon in Wilmington. And so I share this with affection, not animosity:  Delaware is at serious risk of losing its standing as the leading state of incorporation for American companies,” Grewal wrote.

The Stakes for Delaware:

  • For roughly a century, Delaware has lured companies with business-friendly laws, a specialized court, and easy filings. Due to these, the state hosts over two-thirds of Fortune 500 firms.
  • Incorporation fees are a notable part of Delaware’s economy. In 2024, incorporation fees brought $1.33 billion to the state. 
  • Delaware rivals like Nevada, Texas, and Wyoming are now muscling in with their own pro-business pitches.
  • New Delaware Gov. Matt Meyer is digging into Chancery complaints.
  • “I’m hearing something similar from a number of Delaware companies and attorneys. That they feel like they get the same judge every time when they come to Delaware business court, and they don’t feel like they are getting a fair hearing,” he told CNBC.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk and Tesla AI Director share insights after empty driver seat Robotaxi rides

The executives’ unoccupied tests hint at the rapid progress of Tesla’s unsupervised Robotaxi efforts.

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Ashok Elluswamy

Tesla CEO Elon Musk and AI Director Ashok Elluswamy celebrated Christmas Eve by sharing personal experiences with Robotaxi vehicles that had no safety monitor or occupant in the driver’s seat. Musk described the system’s “perfect driving” around Austin, while Elluswamy posted video from the back seat, calling it “an amazing experience.”

The executives’ unoccupied tests hint at the rapid progress of Tesla’s unsupervised Robotaxi efforts.

Elon and Ashok’s firsthand Robotaxi insights

Prior to Musk and the Tesla AI Director’s posts, sightings of unmanned Teslas navigating public roads were widely shared on social media. One such vehicle was spotted in Austin, Texas, which Elon Musk acknowleged by stating that “Testing is underway with no occupants in the car.” 

Based on his Christmas Eve post, Musk seemed to have tested an unmanned Tesla himself. “A Tesla with no safety monitor in the car and me sitting in the passenger seat took me all around Austin on Sunday with perfect driving,” Musk wrote in his post.

Elluswamy responded with a 2-minute video showing himself in the rear of an unmanned Tesla. The video featured the vehicle’s empty front seats, as well as its smooth handling through real-world traffic. He captioned his video with the words, “It’s an amazing experience!”

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Towards Unsupervised operations

During an xAI Hackathon earlier this month, Elon Musk mentioned that Tesla owed be removing Safety Monitors from its Robotaxis in Austin in just three weeks. “Unsupervised is pretty much solved at this point. So there will be Tesla Robotaxis operating in Austin with no one in them. Not even anyone in the passenger seat in about three weeks,” he said. Musk echoed similar estimates at the 2025 Annual Shareholder Meeting and the Q3 2025 earnings call.

Considering the insights that were posted Musk and Elluswamy, it does appear that Tesla is working hard towards operating its Robotaxis with no safety monitors. This is quite impressive considering that the service was launched just earlier this year.

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Starlink passes 9 million active customers just weeks after hitting 8 million

The milestone highlights the accelerating growth of Starlink, which has now been adding over 20,000 new users per day.

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Credit: Starlink/X

SpaceX’s Starlink satellite internet service has continued its rapid global expansion, surpassing 9 million active customers just weeks after crossing the 8 million mark. 

The milestone highlights the accelerating growth of Starlink, which has now been adding over 20,000 new users per day.

9 million customers

In a post on X, SpaceX stated that Starlink now serves over 9 million active users across 155 countries, territories, and markets. The company reached 8 million customers in early November, meaning it added roughly 1 million subscribers in under seven weeks, or about 21,275 new users on average per day. 

“Starlink is connecting more than 9M active customers with high-speed internet across 155 countries, territories, and many other markets,” Starlink wrote in a post on its official X account. SpaceX President Gwynne Shotwell also celebrated the milestone on X. “A huge thank you to all of our customers and congrats to the Starlink team for such an incredible product,” she wrote. 

That growth rate reflects both rising demand for broadband in underserved regions and Starlink’s expanding satellite constellation, which now includes more than 9,000 low-Earth-orbit satellites designed to deliver high-speed, low-latency internet worldwide.

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Starlink’s momentum

Starlink’s momentum has been building up. SpaceX reported 4.6 million Starlink customers in December 2024, followed by 7 million by August 2025, and 8 million customers in November. Independent data also suggests Starlink usage is rising sharply, with Cloudflare reporting that global web traffic from Starlink users more than doubled in 2025, as noted in an Insider report.

Starlink’s momentum is increasingly tied to SpaceX’s broader financial outlook. Elon Musk has said the satellite network is “by far” the company’s largest revenue driver, and reports suggest SpaceX may be positioning itself for an initial public offering as soon as next year, with valuations estimated as high as $1.5 trillion. Musk has also suggested in the past that Starlink could have its own IPO in the future. 

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Elon Musk’s Grok records lowest hallucination rate in AI reliability study

Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6.

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UK Government, CC BY 2.0 , via Wikimedia Commons

A December 2025 study by casino games aggregator Relum has identified Elon Musk’s Grok as one of the most reliable AI chatbots for workplace use, boasting the lowest hallucination rate at just 8% among the 10 major models tested. 

In comparison, market leader ChatGPT registered one of the highest hallucination rates at 35%, just behind Google’s Gemini, which registered a high hallucination rate of 38%. The findings highlight Grok’s factual prowess despite the AI model’s lower market visibility.

Grok tops hallucination metric

The research evaluated chatbots on hallucination rate, customer ratings, response consistency, and downtime rate. The chatbots were then assigned a reliability risk score from 0 to 99, with higher scores indicating bigger problems.

Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6. DeepSeek followed closely with 14% hallucinations and zero downtime for a stellar risk score of 4. ChatGPT’s high hallucination and downtime rates gave it the top risk score of 99, followed by Claude and Meta AI, which earned reliability risk scores of 75 and 70, respectively. 

Why low hallucinations matter

Relum Chief Product Officer Razvan-Lucian Haiduc shared his thoughts about the study’s findings. “About 65% of US companies now use AI chatbots in their daily work, and nearly 45% of employees admit they’ve shared sensitive company information with these tools. These numbers show well how important chatbots have become in everyday work. 

“Dependence on AI tools will likely increase even more, so companies should choose their chatbots based on how reliable and fit they are for their specific business needs. A chatbot that everyone uses isn’t necessarily the one that works best for your industry or gives accurate answers for your tasks.”

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In a way, the study reveals a notable gap between AI chatbots’ popularity and performance, with Grok’s low hallucination rate positioning it as a strong choice for accuracy-critical applications. This was despite the fact that Grok is not used as much by users, at least compared to more mainstream AI applications such as ChatGPT. 

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