Musk Moves SpaceX Incorporation to Texas Amid Delaware Feud

Elon Musk announced that SpaceX has officially changed its state of incorporation from Delaware to Texas. The move comes amidst a heated dispute between Musk and Delaware, stemming from a state court’s decision to invalidate his substantial $50.9 billion pay package from Tesla. Musk took to social media platform X to make the announcement, stating that SpaceX had filed the necessary paperwork with the Texas Secretary of State earlier in the day.

In a post on X, Musk criticized Delaware, suggesting that companies still incorporated there should consider relocating. He shared a screenshot of a certificate from the Texas Secretary of State’s office, confirming SpaceX’s filing. Musk further emphasized the move by sharing a fan-made animated graphic of the SpaceX logo with an overlaid Texas map.

The news of SpaceX’s relocation was met with enthusiasm from Texas Governor Greg Abbott, who welcomed the company with a tweet saying, “Welcome Home!” This move comes shortly after Musk’s announcement of plans to hold a shareholder vote at Tesla to transfer the electric vehicle company’s state of incorporation to Texas. Musk conducted an informal poll on X, which indicated overwhelming support for the move to Texas.

While Neuralink, another company founded by Musk, has also relocated its state of incorporation from Delaware to Nevada, the process for Tesla, a publicly traded company, will be more complex and require shareholder approval. Musk has been vocal about his displeasure with Delaware’s legal system since a state judge voided his record-breaking pay package from Tesla, citing concerns about its fairness to shareholders and the board’s fiduciary duties.

Musk’s public feud with Delaware began after the court’s ruling, with the billionaire advising against incorporating companies in the state. Delaware is known for its corporate-friendly laws and tax benefits, making it a popular choice for businesses. SpaceX’s move to Texas marks a significant development in Musk’s ongoing battles with Delaware and underscores his preference for states like Texas and Nevada for incorporating companies.