Elon Musk announced Wednesday that he had officially moved SpaceX’s incorporation from Delaware to Texas — where his electric vehicle company Tesla is headquartered.
Musk announced the decision on Wednesday at the same time as he urged other businesses to get out of Delaware. His decision comes after a judge in Delaware sided with a Tesla shareholder complaint that Musk’s compensation package was unfair.
“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 said.
Musk has also proposed incorporating Tesla in Texas, which he has suggested will happen after a shareholder vote. The electric vehicle maker relocated its headquarters from California to Austin, Texas, in 2021.
“Move your company out of Delaware before they lock the doors, as they just did with Tripadvisor,” Musk said on January 30 shortly after Delaware judge Kathleen McCormick ruled against his roughly $56 billion compensation package. McCormick said the deal was negotiated in a “deeply flawed” manner.
“In the final analysis, Musk launched a self-driving process, recalibrating the speed and direction along the way as he saw fit,” McCormick said. “The process arrived at an unfair price. And through this litigation, the plaintiff requests a recall.”
Tesla could be required to come up with a new compensation package, though Musk is expected to appeal.
In late January, Musk posted a poll on X asking whether Tesla should move its incorporation to Texas.
“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,” Musk said after 87% of respondents to the poll voted in favor of moving.
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Last week, Musk moved incorporation of Neuralink, his neurotechnology company, from Delaware to Nevada. The move came after Neuralink successfully implanted a brain chip into its first human subject.
The Neuralink brain implant is a “brain-computer interface” technology that seeks to help people with debilitating conditions, such as paralysis, to interact with the world by controlling devices with their thoughts, The Wall Street Journal reported. Musk, who founded Neuralink along with a team of scientists in 2016, said the first patient received the implant on Sunday and “is recovering well.”
The billionaire entrepreneur has faced a series of investigations into his ventures from the Department of Justice and the SEC after he acquired Twitter in October 2022.
