Elon Musk billionaire bill fans draw progressive challengers in Delaware

A progressive wing of the Democratic Party in Delaware is backing primary opponents of six incumbent Democratic state lawmakers who are pushing for a change in the state’s corporate law that would benefit executives and billionaires facing shareholder lawsuits in the state, including Elon Musk and Mark Zuckerberg.

The Delaware Working Families Party told CNBC exclusively that it is supporting six Democratic candidates in the primary against other Democratic incumbents who support SB 21. The measure became law in 2025 and was dubbed the “billionaires’ bill” by opponents. How has the law changed Companies can use independent directors and other officials to ensure their deals stand up in court, and this limits the records shareholders can obtain from companies when investigating possible wrongdoing.

Before the bill became law, many institutional investors, legal experts and shareholder advocates opposed the legislation, arguing that it would harm minority shareholders and allow boards and executives to make decisions based on their own interests rather than the broader investor base.

Musk, whose record $56 billion salary package was in legal limbo in Delaware, was relocated Tesla’s incorporation out of state during the debate. Many other businesses have considered similar moves, spooking state lawmakers, as Delaware has long been seen as a haven for business despite being a predominantly Democratic state.

The Working Families Party, which is prominent in New York politics and has expanded into other states, said the endorsements are part of an effort to move Delaware “towards more working-class people.”

“We want to make sure people know the impact of this bill undermining corporate accountability and giving $55 billion to Elon Musk, gutting federal agencies that save millions of lives overseas, while also laying off a bunch of Delawareans here at home,” Karl Stomberg, Delaware state director of the Working Families Party, told CNBC.

Last year, Musk was leading the Department of Government Efficiency, or DOGE, a White House effort to cut spending that has overwhelmed numerous government agencies and laid off scores of federal employees.

As CNBC previously reported, a Delaware corporate firm representing Musk was involved in drafting the bill.

Specifically, WFP is supporting four candidates for the state House of Representatives and two candidates for the state Senate. Everyone is heading into primaries against incumbent Democrats.

He supports Shané Darby, who takes over for Rep. Nnamdi Chukwuocha; Rae Krantz, who is running against Rep. Debra Heffernan; Pamela Salaam, who is running against Rep. Frank Cooke; Will Imbrie-Moore for Rep. Kim Williams; Adriana Bohm is in her race against Senator Dan Cruce and Shay Frisby is in her race against Senator Ray Seigfried.

Musk’s pay package was eventually adjusted by the Delaware Supreme Court. But the state supreme court’s decision was not tied to SB21.

Delaware Democrats, including Governor Matt Meyer, who support rewriting corporate law, 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 jurisprudence, our corporate laws, remained predictable, clear and fair,” Meyer said on CNBC’s “Squawk Box” last year.

Meyer signed the bill, which passed unanimously in the state Senate and finished 32-7 in the House.

Delaware’s billionaire-friendly approach differs 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 total wealth of California tax residents with a net worth of $1 billion or more. Unlike Delaware, which addresses corporate residence, California’s proposal would address personal residence.

— CNBC’s Lora Kolodny contributed to this article.

Correction: An earlier version of this story misspelled Karl Stomberg’s name.