SpaceX has moved its state of incorporation from Delaware to Texas, the rocket company’s CEO Elon Musk said Wednesday on X, spotlighting the billionaire’s ongoing feud with Delaware over a state court’s decision to void his massive $50.9 billion pay package from Tesla.
Elon Musk announced SpaceX has moved its state of incorporation from Delaware to Texas.
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Key Takeaways
- The company made a filing with the Texas Secretary of State earlier on Wednesday to request the move.
- In a post on X later in the day, Musk said the rocket company has “moved its state of incorporation from Delaware to Texas,” and shared a screenshot of a certificate from the Secretary of State’s office acknowledging SpaceX’s filing.
- Musk also took a shot at Delaware, telling those with a company incorporated in the state: “I recommend moving to another state as soon as possible.”
- Musk later shared a fan-made animated graphic of the SpaceX logo with a Texas map.
- A day earlier, Texas Gov. Greg Abbott reacted to news reports of SpaceX’s, saying on X: “Welcome Home!”
News Peg
Earlier this month, Musk announced plans to hold a shareholder vote at Tesla to transfer the electric vehicle company’s state of incorporation to Texas. The billionaire announced the decision after conducting a public poll on X and said the “public vote” was “unequivocally in favor of Texas.”
A shareholder vote on the matter is yet to take place. Over the weekend, another one of Musk’s companies, Neuralink—which is working on brain implants—moved its state of incorporation from Delaware to Nevada. In an earlier X post, Musk wrote: “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters.” Unlike Neuralink and SpaceX, Tesla is publicly traded, and moving its state of incorporation will require more time and shareholder approval.
Key Background
Musk began publicly feuding with the state of Delaware last month after a state judge voided his record $50.9 billion pay package from Tesla in a case brought by a shareholder. The plaintiff had argued the huge pay package was unfair to shareholders and that the company’s board had failed in its fiduciary duty by approving it. The company is expected to file an appeal against the ruling. The billionaire, however, responded on Xng: “Never incorporate your company in the state of Delaware.” Delaware is a popular choice for incorporating companies due to its tax benefits and corporate-friendly laws.
This article was first published on forbes.com and all figures are in USD.
