First we had Brexit, the flight of human capital in the UK from the European Union, thanks in large part to the EU’s insane open-borders policies. Next we’ve seen Calexit, the flight of both human and financial capital from Gavin Newsom’s progressive paradise, which may shortly lose Paramount after more than a century. Progressive and confiscatory policies have also fueled the Great Relocation, of which Calexit is a part, and in which large numbers of Americans have moved themselves and their capital from blue states to conservative alternatives, bringing their economic power with them.
Ever since New York City voters swooned for Zohran Mamdani, capital markets have kept a close watch on the exits. However, the next forum for capital flight has been Delaware, which had for decades been a haven for incorporation and for credit firms. The politicization of its judiciary, however, has incentivized major companies to flee to jurisdictions where statutes and consistent adjudication offer the best environment for risk, as Newsmax reported today:
On Tuesday, DoorDash, a major online delivery service, informed the Securities and Exchange Commission that the controlling stockholders approved reincorporating the company in Nevada, following unanimous approval from DoorDash’s board.
What makes the decision particularly significant is the rationale.
DoorDash pointed to what it sees as surprising outcomes in Delaware courts and an increasingly litigious corporate environment.
Nevada, by contrast, offers a more statute-focused system that the company believes can provide greater predictability.
This trend first started a few years ago. However, it picked up a big head of steam when Delaware courts began attempting to intervene in Elon Musk’s business affairs. A judge granted an injunction against his Tesla compensation plan, which cost the Tesla and SpaceX owner and founder billions of dollars, at least initially. The state supreme court reversed the lower court, but still required Musk to pay $54 million to cover the plaintiff’s legal fees. As Newsmax notes, “the actual plaintiff received just $1.”
To borrow Dave Wasserman’s famous election-analysis line, corporate America had seen enough of Delaware’s activist courts and regulatory agencies. The exodus of capital now known as ‘Dexit’ has grown to $3 trillion and counting, most of it heading to Nevada and especially Texas:
Over the past two years, more than 60 public companies with over $3 trillion in combined market capitalization have left Delaware.
Worse, Delaware is losing a major share of big public companies.
Delaware historically captured more than 80% of operating-company IPOs, whereas its share fell to approximately 64% in the first half of 2026, with Texas and Nevada gaining ground, according to a new study.
Four of the largest energy firms in the world re-domiciled to Texas last month alone. New IPOs are not the state’s biggest problem; it’s the flight of taxable capital operations in reaction to disincentives that its activist, progressive governance and judiciary have created.
Will New York City be next? Zohran Mamdani is creating a different set of disincentives to capital, mainly by doxxing and directly targeting the holders of capital in the Big Apple. Ken Griffin was just the start; Mamdani’s pied-à-terre list of 900,000 homeowners did the same thing to practically all classes of property owners in the city. Texas has developed its “Y’All Street” alternative to Wall Street, and Dallas has overtaken Chicago as the country’s second-biggest financial market.
Capital can react to disincentives far more quickly than tinpot Marxist localities can capture it, and capital always has options. Delaware is learning this lesson the hard way as its tax base pied-à-terres it way to Texas, Nevada, Florida, and other friendlier environments.
Dexit is underway. NYSExit may be next, if it hasn’t already begun.
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