SpaceX, the space exploration company founded by Elon Musk, has filed to change its incorporation location from Delaware to Texas, according to public filings with the Texas secretary of state’s office. This comes in the wake of a recent Delaware Chancery Court ruling that ordered Musk’s electric vehicle company Tesla to rescind the CEO’s 2018 pay package, which was worth about $56 billion in options.
Musk, who is known for being vocal about his opinions, had expressed a strong preference for moving his businesses out of Delaware after the court’s decision. Neuralink, another one of Musk’s companies, has also begun moving its location of incorporation from Delaware to Nevada.
In a post on X, Musk wrote, “SpaceX has moved its state of incorporation from Delaware to Texas! If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible.”
He has also promised that Tesla will hold a shareholder vote to get approval to move the company’s site of incorporation to Texas. Musk is expected to file for appeal to the Delaware State Supreme Court regarding his pay package. If the ruling stands, he will lose his options but not any shares he previously held.
However, even before the ruling, Musk was already exiting Delaware. After leading the $44 billion buyout of Twitter in 2022, he renamed it X and moved its site of incorporation to Nevada.
(Source: CNN | NYT | Fortune)
