SpaceX is seeking to convert the location of its business incorporation to Texas, according to a filing with the Texas Secretary of State’s office, becoming the latest Elon Musk-led company to ditch Delaware.
The filing on Wednesday came after Musk’s almost US$56 billion pay package at Tesla Inc was voided by a Delaware judge last month. Immediately after the ruling, the billionaire said he would summon Tesla shareholders to vote on moving the automaker’s incorporation to Texas. He has not yet made such a request.
In a social media post, Musk said: “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.”
Photo: Reuters
It is not the first Delaware exit for Musk since the pay decision. One of the six companies he controls, Neuralink Corp, was reincorporated in Nevada on Thursday last week. Moving Tesla out of Delaware would take more steps because it is publicly traded, unlike SpaceX and Neuralink.
SpaceX already has a massive footprint in Texas. The company operates an engine development and testing facility in McGregor, a small town near Waco, and it has established a Starlink satellite manufacturing facility outside of Austin.
The company also constructed a massive rocket production facility called Starbase near Brownsville, where it builds and launches its next-generation behemoth rocket called Starship.
Musk moved Tesla’s headquarters to Austin in 2021 from California, after criticizing the state’s COVID-19 restrictions.
Moving SpaceX’s incorporation would be a huge boon for Texas leaders, who have sought to lure companies by touting the state’s low taxes and light regulatory touch. SpaceX, which holds massive launch contracts with both NASA and the US Department of Defense, is valued at almost US$180 billion — the second-highest of any private company in the world.
Musk and the Tesla investor who successfully challenged his pay package earlier on Wednesday said that they were discussing asking Chancery Court Chief Judge Kathaleen McCormick to put her decision on hold.
That case marked the second legal setback Musk suffered in Delaware. Musk in 2022 abandoned his court fight to back out of his US$44 billion offer to buy Twitter Inc after a series of tough rulings, also by McCormick.
Musk renamed the company X and shifted its incorporation from Delaware to Nevada.
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