SpaceX, Elon Musk's space technology company, moved its incorporation location from Delaware to Texas following a Delaware Chancery Court ruling that overturned a hefty salary package awarded to the tycoon by another one of his companies.
The South African businessman used his social media platform to announce the change and encourage other companies to follow suit. "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 posted alongside a relocation document.
The tycoon's decision came less than a month after a judge in Delaware struck down Elon Musk's $55 billion salary package at Tesla, which was deemed excessive by Chancery Court Chancellor Kathaleen McCormick.
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. pic.twitter.com/B7FLByL2dY
— Elon Musk (@elonmusk) February 15, 2024
Musk has already moved other companies
This is not the first time Musk has made such a change. In the past, he changed the incorporation location of X (formerly known as Twitter) from Delaware to Nevada after acquiring the social media platform for $44 billion in 2022. In addition, following the salary package ruling, he moved the commercial incorporation of his brain chip company, Neuralink, from Delaware to Nevada.
Musk also recently stated his intention to move the legal base of his electric vehicle company to Texas. "Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas," he reported earlier this month after asking X users their opinion on the move and getting 87.1% versus 12.9% of votes in favor of the change. However, moving Tesla out of Delaware could present additional complications, as it is a public company, unlike Neuralink and SpaceX.
