Elon Musk doubles down on his promise to ditch Delaware. SpaceX is headed for Texas incorporation
By Ramishah Maruf, CNN
New York (CNN) — SpaceX wants to move its business incorporation location from Delaware to Texas, according to a Wednesday filing to the Texas Secretary of State.
The move by the Elon Musk-owned company comes after a Delaware state judge struck down Musk’s 2018 Tesla pay package, siding with a shareholder who had challenged it as excessive.
Delaware is traditionally where many of the United States’ biggest businesses are incorporated for legal and tax purposes. It is seen as a desirable place to seek approval for mergers and litigate disputes, and doesn’t levy sales tax or tax on profits from intellectual property.
The Delware court’s ruling could potentially wipe out more than $51 billion of Musk’s assets, barring any outcomes from an appeal. In the aftermath, Musk said he would move his business incorporations out of the state.
“SpaceX has moved its state of incorporation from Delaware to Texas!” Musk posted on X Wednesday. “If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible.”
SpaceX joins Musk’s brain implant company Neuralink in ditching Delaware. Neuralink changed its incorporation to Nevada, Bloomberg first reported.
“Never incorporate your company in the state of Delaware,” Musk posted on X in January. “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters,” he said in another tweet.
After the pay package ruling, Musk said he is seeking shareholder approval to incorporate Tesla, another company that he leads, in Texas.
Musk had previously put up a poll on X asking if Tesla (TSLA) should move its registration from Delaware to Texas, where it is already headquartered. Hours later, the Tesla CEO wrote that the “public vote is unequivocally in favor of Texas.” The poll results showed Texas had won the backing of more than 87% of about 1.1 million votes.
– CNN’s Diksha Madok and Allison Morrow contributed to this report.
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