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Texas Advances Pro-Business Agenda as Elon Musk's Companies Flourish in the State

Governor Abbott's legislative and judicial initiatives are reshaping Texas' corporate landscape, drawing praise for economic growth and criticism over reduced corporate accountability.

Tesla CEO, Elon Musk, left, sits with Texas Gov. Greg Abbott at a groundbreaking ceremony for the auto manufacturer's lithium refining facility in Robstown, Texas, on Monday, May 8, 2023.
From left: University of Texas Interim President Jim Davis, Gov. Greg Abbott and Texas Law Federalist Society President Jordan Lamb participate in an event at The University of Texas Law School in Austin on April 3, 2025.

Overview

  • Elon Musk moved SpaceX, Tesla, and X to Texas following dissatisfaction with Delaware's corporate legal system, solidifying the state as a hub for his enterprises.
  • Governor Greg Abbott played a key role in creating Texas' business courts, appointing judges and emphasizing 'predictability and certainty' in rulings for corporations.
  • The Texas Legislature is advancing a bill to limit shareholder lawsuits, raising the threshold for filing claims and shielding executives from most legal scrutiny.
  • Critics argue that Abbott's judicial appointments and short-term business court judgeships undermine judicial independence and foster political influence.
  • Texas leaders, including Abbott and Senator Ted Cruz, have provided Musk with significant tax incentives and legislative support to protect and expand his business interests.