Elon Musk Moves SpaceX Incorporation to Texas After Delaware Judge Axed $56bn Tesla Pay
SpaceX, the rocket company owned by Elon Musk, has relocated its state of incorporation from Delaware to Texas. This decision comes after a Delaware judge ruled against Musk's $56bn pay package for Tesla and Musk announced his plan to move Tesla's incorporation to Texas as well.
SpaceX Moves Incorporation to Texas
Elon Musk, CEO of SpaceX and Tesla, has announced that the rocket company has relocated its state of incorporation from Delaware to Texas. Musk made the announcement on his platform, urging other companies still incorporated in Delaware to move to another state as soon as possible.
This move by SpaceX comes after a Delaware judge ruled in favor of Tesla investors who filed a lawsuit against Musk's $56bn pay package, stating it was excessive. Musk, who is also the CEO of Tesla, responded by saying that he plans to hold a shareholder vote to move Tesla's incorporation to Texas as well.
Tesla Shareholder Vote in Favor of Texas
After conducting a poll, Musk confirmed that the public vote was unequivocally in favor of Texas. He stated that Tesla will immediately hold a shareholder vote to transfer its state of incorporation to Texas. According to the poll, 87% of respondents voted 'yes' for this change.
The Delaware judge's ruling in January found that Musk's compensation was improperly set by Tesla's board and therefore struck down the package. This ruling came after a lawsuit filed by Tesla shareholder Richard Tornetta, who accused Musk of interfering with negotiations around the compensation package and claimed that the board lacked independence.
Neuralink Also Changes Incorporation Location
In addition to SpaceX and Tesla, Musk's brain-chip implant company, Neuralink, has also changed its location of incorporation from Delaware to Nevada. This relocation follows the trend set by SpaceX and demonstrates Musk's preference for Texas and Nevada over Delaware.
The move of Musk's companies to Texas and Nevada is significant as it reflects his drive to explore new opportunities and potentially benefit from the business-friendly environment offered by these states. With these changes, Musk aims to streamline operations and optimize the growth of his ventures.
