Elon Musk’s logo sits on a tree in federal court during a hearing regarding Elon Musk’s lawsuit against OpenAI in Oakland, California, on April 30, 2026.
Josh Edelson | AFP | Getty Images
The progressive wing of the Democratic Party in Delaware is endorsing the primary challengers to six Democratic state lawmakers who have pushed for changes to the state’s corporate law that benefit executives and billionaires, including Elon Musk and Mark Zuckerberg, who have faced lawsuits from state shareholders.
The Delaware Working Families Party told CNBC exclusively that it is securing six Democratic votes in the primaries against other Democratic incumbents who supported SB 21. The measure became law in 2025 and was called “billionaire” by opponents. How did the law change? companies can use independent directors and other officials to ensure that the agreements they have made will be successful in court, and it limits the records that shareholders can obtain from companies when investigating possible wrongdoing.
Before the bill became law, many institutional investors, legal scholars and shareholder advocates opposed it, saying it would harm minority shareholders and allow boards and managers to make decisions based on their own interests rather than on the basis of the majority of investors.
Musk, whose record $56 billion settlement was held in Delaware, moved Tesla being out of state at the time of the shooting. Many other businesses are looking at the same movement, harassing state lawmakers, as Delaware, despite being a Democratic state, has long been considered a place for business.
The Working Families Party, prominent in New York politics and expanding in other states, said the endorsement is part of its effort to move Delaware “toward working-class people.”
“We want to make sure people are aware of the impact this bill has had and will have on damaging corporate accountability and basically giving Elon Musk $55 billion while he’s still running…
Musk last year led the Department of Government Operations, or DOGE, a White House effort to cut spending that increased many government agencies and laid off civil servants.
A Delaware firm that represented Musk had a hand in drafting the bill, as CNBC previously reported.
Specifically, WFP is nominating four candidates for the State Senate and two candidates for the State Senate. All are running in primaries against incumbent Democrats.
It allows Shané Darby, who is running for Rep. Nnamdi Chukwuocha; Rae Krantz, running against Rep. Debra Heffernan; Pamela Salaam who runs with Rep. Frank Cooke; Is Imbrie-Moore over Rep. Kim Williams; Adriana Bohm over Sen. Dan Cruce, and Shay Frisby in his race against Sen. Ray Seigfried.
Musk’s pay packet was eventually reinstated by the Delaware Supreme Court. The state supreme court’s decision, however, did not rely on SB21.
Delaware Democrats who support the rewriting of business law, including Gov. Matt Meyer, argued that they did not change the law to pay Musk.
“The law changed, because when I came in as governor, we had to make sure that our law, that our corporate law … remains predictable, clear and fair,” Meyer said on CNBC’s “Squawk Box” last year.
Meyer signed the bill after it passed the state Senate unanimously and cleared the House 32-7.
Delaware’s approach to fundraising is different from what California voters may consider on the ballot in November. The California Billionaire Tax Act would impose a one-time 5% tax on the entire wealth of California residents with a net worth of $1 billion or more. Unlike Delaware, which addressed business premises, California’s proposal would address personal residence.
– CNBC Companies Lora Kolodny contributed to this article.
Correction: An earlier version of this story misspelled Karl Stomberg’s name.
