Elon Musk has announced the relocation of SpaceX’s state of incorporation from Delaware to Texas. This decision comes in the wake of a Delaware court ruling that voided Musk’s $56 billion pay package from Tesla.
“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,” Musk wrote on X, sharing a copy of the company’s Certificate of Conversion from the Texas Office of the Secretary of State.Â
SpaceX has moved its state of incorporation from Delaware to Texas!
— Elon Musk (@elonmusk) February 15, 2024
If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible. pic.twitter.com/B7FLByL2dY
SpaceX’s move to Texas comes just over two weeks after a Delaware judge voided Musk’s $56 billion pay package at Tesla. The court’s ruling against Musk’s pay package stemmed from a lawsuit alleging that the compensation was excessive and that the board’s approval process lacked transparency.
Tesla and Musk plan to appeal that ruling.
While that appeal works its way through the system, the ruling has spurred Musk to move his companies out of Delaware, a state traditionally favored by corporations for its tax benefits and legal environment. Instead, Musk has focused on seeking a more favorable operational base in Texas, where SpaceX already maintains significant operations, including a launch site and plans for a new $100 million office and industrial complex in Brownsville.
Texas offers a business-friendly climate with no state income tax, which could provide financial and operational advantages to SpaceX, and possibly Tesla. Since Tesla is a publicly traded company, unlike SpaceX, Musk has called for a shareholder vote to approve Tesla’s move to incorporate in the Lone Star State.
