Elon Musk, the CEO of SpaceX, has recently decided to move the company’s legal home from Delaware to Texas. This move comes after a judge in Delaware invalidated Musk’s $56 billion Tesla pay package.
Musk announced the relocation in a post on X, along with a copy of the certificate of conversion received from the Texas Secretary of State. In his announcement, Musk advised other companies still incorporated in Delaware to consider moving to another state as soon as possible.
This move follows Musk’s decision to relocate Neuralink’s business from Delaware to Nevada on February 8. This decision was made shortly after Neuralink successfully implanted its brain chip into a human patient for the first time.
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With this move, Neuralink joined another company controlled by Musk in Nevada: X, previously known as Twitter before its name change in 2023.
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’s dissatisfaction with Delaware became evident when the court invalidated his Tesla compensation package. He took to Twitter to express his grievances against the state, even polling people on whether Tesla should change its legal corporate home to Texas.
Elon Musk recommended incorporating companies in Nevada or Texas, as these states allow shareholders to have a greater say in decision-making. However, unlike SpaceX and Neuralink, it may take some time for Tesla to move its incorporation.
Musk still needs to obtain a vote from shareholders to approve the relocation of the company’s legal home. It is worth noting that both Tesla and SpaceX already have a significant presence in Texas.
Tesla moved its physical headquarters from California to Texas due to COVID-19 safety measures implemented in the former state. Additionally, Tesla operates a Gigafactory in Texas, where its vehicles, including the Cybertruck, are manufactured. SpaceX’s Starbase, a production and launch facility for its Starship vehicles, is also located in Boca Chica, Texas.
The decision to move SpaceX’s legal home to Texas aligns with Musk’s strategy of consolidating his businesses in states that offer favorable conditions for corporate operations.
By relocating to Texas, SpaceX can take advantage of the state’s business-friendly environment and potentially benefit from various incentives and tax breaks that Texas offers to attract and retain companies.
This move also reflects Musk’s ongoing efforts to diversify and expand his business ventures beyond the confines of a single state. By establishing a presence in different states, Musk can leverage unique opportunities and resources available in each location.
This diversification strategy allows for greater flexibility and resilience in the face of changing market conditions and regulatory landscapes.
