The rocket company SpaceX, founded by billionaire Elon Musk, has officially switched its incorporation from Delaware to Texas, as confirmed by the Texas secretary of state, Jane Nelson. This move comes just weeks after a Delaware judge voided Musk’s pay package at Tesla, another company he owns. The announcement was made by Musk himself on X, the social media platform he owns, where he recommended other companies still incorporated in Delaware to also consider moving to another state.
The decision to relocate the company’s incorporation to Texas comes after Musk, who also resides in Texas, has had issues with Delaware. Last month, a judge in Delaware voided a pay package that had helped make him the world’s wealthiest person. This package allowed Musk to acquire about 304 million Tesla shares at a preset price if the company achieved certain goals. The judge ultimately ruled that Musk had effectively overseen his own compensation plan, valued at more than $50 billion last month, with the help of compliant board members.
The announcement of the incorporation switch came just hours before SpaceX was set to launch a robotic lander that will attempt to carry NASA payloads to the moon. The launch was originally scheduled for Wednesday but had to be postponed to early Thursday morning due to a technical issue.
Overall, the decision to switch the company’s incorporation to Texas is seen as a strategic move by Musk, given his recent legal issues in Delaware. This move could potentially have implications for other companies incorporated in Delaware, as Musk has recommended others to consider relocating as well. It also comes at a significant time for SpaceX, as the company continues to make strides in space exploration and partnerships with organizations like NASA.
In summary, Musk’s announcement of SpaceX’s incorporation switch to Texas reflects broader considerations of corporate strategy and potential implications for other companies.