Elon Musk's SpaceX moves incorporation from Delaware to Texas
What's the story
SpaceX CEO Elon Musk has revealed that the company has shifted its state of incorporation from Delaware to Texas, in the US. This step comes after a Delaware judge ruled in favor of Tesla investors who argued that Musk's $56 billion pay package was excessive. Musk has also mentioned his plans to hold a shareholder vote in order to transfer Tesla's state of incorporation to Texas.
Twitter Post
Take a look at Musk's announcement
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
Steps
Musk's recommendation and Tesla shareholder vote
Musk urged companies still incorporated in Delaware to consider relocating to another state as early as possible. Earlier this month, he conducted a poll in which 87% of participants voted "yes" for Tesla's change of incorporation. After the poll, Musk stated, "The public vote is unequivocally in favor of Texas! Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas."
Legal
Background on the lawsuit
The legal battle against Musk's compensation package began five years ago. At that time, Tesla shareholder Richard Tornetta accused Musk of improperly influencing negotiations surrounding the package and alleged that the board lacked independence. In January 2024, the Delaware judge determined that Tesla's board had inappropriately set Musk's compensation and invalidated the package. Musk's axed Tesla pay deal was the biggest ever for an executive. He claimed the sum would be used to finance interplanetary travel.
Others
Neuralink to shift to Nevada
Last week, Musk's brain-chip implant firm, Neuralink, changed its legal address from Delaware to Nevada. Meanwhile, electric carmaker Tesla shifted its corporate headquarters from Palo Alto, California to Austin (Texas), back in 2021.