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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

Tesla Full Self-Driving is getting a major parking upgrade, Elon Musk says

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Credit: Tesla

Tesla Full Self-Driving is going to be getting a major parking upgrade. That’s according to CEO Elon Musk, who detailed a crafty new feature that will improve parking preferences, removing a layer of human input.

Musk said that upcoming releases of Full Self-Driving will “remember your parking preferences.” It will go to the location you prefer, based on where you’ve parked in the past, instead of taking the first spot available, which is where the suite is currently.

The CEO went on to explain that destination parking is “by far” the biggest reason for intervention during FSD operation. We’d have to believe this is true; many takeovers in my Model Y, which runs the latest version of FSD as it is in the Early Access Program, are due to parking because it chooses a spot I do not want to be in.

Many times, as soon as I enter a parking lot, I take over and park manually. I prefer to park away from the entrance of wherever I am, away from cars. Too many lessons learned over the years from people with free-swinging doors.

We’d imagine these new updates will also solve things like parking orientation. Let’s say when you arrive at work, you always park in the third spot in the third row, and you prefer to back in. It seems as if Musk is implying that your car will now do this, learning from takeovers and aiming to eliminate the need to manually park whenever possible.

This is a major upgrade because parking is a major shortcoming of FSD currently. We’ve requested things like manual input of parking preferences, choosing to park far away, first available, or away from cars, for example.

However, some have used the option of dropping a pin at the location you’d like to park at your destination. This has worked some of the time, but FSD will still choose to park in whatever it sees first.

Musk did not give a timetable for when the improvements would be released, but it is likely to come soon. Tesla has been releasing a new FSD version every few weeks, so we may not have to wait long to test it.

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Elon Musk predicts Grok will start to challenge Hollywood by the end of 2026

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

In a bold declaration on X, xAI CEO Elon Musk announced that its model will be capable of creating full movies by the end of the year. Quoting an xAI post showcasing a stunning AI-generated trailer for Homer’s The Odyssey, Musk simply stated: “Full movies by the end of the year.”

The quoted video, created entirely with the newly released Grok Imagine Video 1.5, demonstrates the rapid strides in AI video generation. Crafted by creator David Thompson, the 2-minute-plus trailer reimagines the ancient epic in the style of a 1970s classical Hollywood blockbuster. It features 36 meticulously consistent shots that form a cohesive narrative world.

Its realistic nature is truly mind-blowing, and it’s pretty amazing to think that it cool to think it could create an entire movie soon.

The trailer reimagines The Odyssey as a whole, and opens with a concept board outlining the vision: a retelling of the story using 35mm film aesthetics, classical framing, and other elements.

There are a handful of things that truly outline Grok’s capabilities:

  • Scale and Physics: A bloodied Spartan helmet rests on a sandy battlefield amid smoke, marching armies, and flocks of birds. Horses gallop, chariots charge, and warriors clash with believable weight and motion.
  • Emotional Depth and Dialogue: Close-ups capture intense expressions, as characters deliver lines like a warrior’s grief-stricken speech on a rocking ship.
  • Cinematic Workflow: It’s hard to believe AI created this trailer, as editing and suspense are clearly detailed in this trailer

Now, why is this a big deal? AI has been a real threat to the way movies have been made over the past several decades. It’s no secret that the various AI platforms out there are becoming more capable, but Musk has said that he believes things would be “watchable” by the end of this year, and by the end of 2027, Grok would be able to create “really good” movies.

There are several issues that remain, most notably the ability to remain cohesive throughout the length of a film, energy requirements, copyright questions for training data, and artistic intent. Hollywood has created some of the greatest cinematic masterpieces over the past 100 years, but 2026 could be the year AI not only assists but also independently authors cinema.

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The Boring Company just doubled its tunneling power in Nashville

The Boring Company’s Prufrock MB2 is commissioned and ready to mine beneath Nashville’s streets.

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The Boring Company’s second tunnel boring machine, Prufrock MB2, is officially ready to dig in Nashville. The company confirmed the news on X, posting: “Prufrock-MB2 is ready to mine in Nashville! MB2 commissioning is complete, including the brief 11 rpm rotation shown here. Will MB2 catch up to MB1, who had quite the head start? And Prufrock-MB3 ships in August!”

MB2 arrives with meaningful improvements over its predecessor. Lessons learned from the launch and operation of MB1 have already been applied to MB2 to improve efficiency and prepare the machine for launch.

Traditional tunnel boring machines operate in a stop-and-go cycle, digging roughly five feet, halt, erect precast concrete segments to line the tunnel wall, then resume. That repeated interruption is one of the main reasons conventional tunneling is slow and expensive. Prufrock is designed to install the tunnel liner simultaneously with mining, eliminating the need to stop every five feet. The machine also skips the need for excavated launch pits. Prufrock arrives on a truck, tilts down, and launches into the ground within 24 hours. And when the tunnel is complete, it emerges from the ground and drives to its next launch site on a trailer, eliminating the need for expensive cranes or pit excavation. The machine is also fully electric and runs with zero people in the tunnel during normal operations, controlled remotely from a surface operations center.

It won’t be long before we hear of another major update on The Boring Company’s Music City Loop project – a planned underground transit network beneath Nashville that would move passengers in electric vehicles through a series of tunnels at highway speeds, and bypassing surface traffic entirely. Nashville was selected in part because of its strong rock conditions that suits the Prufrock machines well, and relatively less regulatory hurdles.

Progress has been steady on multiple fronts. All 37 permits and approvals required ahead of tunneling have been obtained, out of 45 total. Key wins include a fully executed TDOT tunnel permit authorizing 25 miles of tunnel, unanimous airport authority approval for a Nashville International Airport station, and the city’s first residential station agreement serving downtown tower residents.

With MB1 already tunneling, MB2 now commissioned, and MB3 shipping in August, Nashville is becoming something of a live proving ground for scaled tunnel boring. The broader ambition is not limited to one city. The Boring Company’s stated goal is to make underground transportation a practical alternative to surface roads across major metro areas. Nashville is one of many cities, including a successful Las Vegas tunnel system, where that idea is being put to the test at real speed.

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