In a recent filing to the Texas Secretary of State, SpaceX has expressed its intention to relocate its business incorporation location from Delaware to Texas.
Tesla, owned by Elon Musk, has made this decision in response to a Delaware state judge’s ruling against Musk’s 2018 pay package for the company. The judge agreed with a shareholder who argued that the package was excessive.
Delaware has long been a popular choice for incorporating major businesses in the United States due to its favorable legal and tax environment. It is considered an attractive jurisdiction for obtaining approval for mergers, resolving disputes, and enjoying tax benefits such as the absence of sales tax and taxes on intellectual property profits.
In a ruling by the Delaware court, it is possible that Musk’s assets worth over $51 billion could be completely wiped out, unless there is a successful appeal. In response to this decision, Musk has announced his intention to relocate his business incorporations outside of the state.
SpaceX has officially relocated its state of incorporation from Delaware to Texas, according to a recent announcement by Elon Musk. In a tweet on Wednesday, Musk urged other companies still incorporated in Delaware to consider moving to a different state without delay.
SpaceX and Neuralink have both made a significant move by changing their incorporation from Delaware to Nevada. This decision was taken by Elon Musk’s brain implant company, Neuralink, following SpaceX’s lead. Bloomberg was the first to report this development.
In a tweet shared in January, Musk strongly advises against incorporating a company in the state of Delaware. Instead, he suggests considering Nevada or Texas as better options, especially if you value shareholders having a say in decision-making.
After the ruling on the pay package, Musk announced that he is actively seeking shareholder approval to incorporate Tesla, another company under his leadership, in the state of Texas.
Elon Musk had previously conducted a poll on X, asking whether Tesla should relocate its registration from Delaware to Texas, where the company is already headquartered. Shortly after, Musk announced that the “public vote overwhelmingly supports Texas.” The poll results revealed that Texas had secured the support of over 87% of the approximately 1.1 million votes.
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