SpaceX has submitted a filing to the Texas Secretary of State, expressing their desire to relocate their business incorporation location from Delaware to Texas.
Elon Musk’s company has taken this action in response to a Delaware state judge’s decision to invalidate Musk’s 2018 Tesla pay package. The judge ruled in favor of a shareholder who had raised concerns about its excessive nature.
Delaware has long been regarded as a popular choice for incorporating major businesses in the United States due to its favorable legal and tax regulations. It is considered an attractive jurisdiction for obtaining merger approvals, resolving disputes, and benefiting from exemptions such as no sales tax or taxes on intellectual property profits.
In a potentially game-changing decision, the Delware court has ruled in a way that could result in the erasure of over $51 billion worth of assets owned by Musk. This ruling, unless overturned on appeal, has prompted Musk to announce his intention to relocate his business incorporations away from the state.
“Guess what? SpaceX just made a big move! Elon Musk announced on Wednesday that the company has shifted its state of incorporation from Delaware to Texas. In fact, Musk even went on to recommend that other companies currently incorporated in Delaware should consider making the move to a different state as soon as they can. This news definitely has people buzzing about what it means for the future of SpaceX.”
SpaceX has followed in the footsteps of Elon Musk’s brain implant company, Neuralink, by moving its incorporation from Delaware to Nevada. This change was first reported by Bloomberg.
Musk expressed his opinion on incorporating a company in the state of Delaware, stating, “Never incorporate your company in the state of Delaware.” He further recommended Nevada or Texas for incorporation if shareholders’ decision-making is preferred.
After the ruling on the pay package, Musk announced his intention to seek shareholder approval for incorporating Tesla, another company under his leadership, in Texas.
In a recent poll on X, Elon Musk asked whether Tesla should relocate its registration from Delaware to Texas, where the company is already headquartered. Following the public vote, Musk declared that the majority, with over 87% of approximately 1.1 million votes, was in favor of Texas.
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