Under Elon Musk's leadership, SpaceX has formally submitted a request to change its incorporation location from Delaware to Texas, as indicated by public filings with the Texas Secretary of State's office.
This strategic decision follows a recent ruling by the Delaware Chancery Court, which mandated Tesla, another company led by Musk, to revoke the CEO's substantial 2018 pay package valued at approximately $56 billion in options, as reported by CNBC.
In parallel, Neuralink, another venture associated with Musk, is currently relocating its incorporation from Delaware to Nevada.
Expressing a distinct preference for relocating his businesses out of Delaware after the court's decision, Musk actively advocates for other companies to consider similar moves. He has committed to organizing a shareholder vote at Tesla to secure approval for shifting the company's incorporation site to Texas.
On Wednesday, Elon Musk officially declared SpaceX's transition from Delaware to Texas through a post on X, urging companies still incorporated in Delaware to expedite the relocation process.
Anticipating a potential appeal regarding his contested pay package, Musk may file with the Delaware State Supreme Court. If the court's decision remains unchanged, Musk will forfeit his options but retain any shares he acquired earlier.
Elon Musk had initiated departures from Delaware even before the recent ruling. Following his leadership in Twitter's $44 billion acquisition in 2022, he rebranded it as X and relocated its incorporation site to Nevada.
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Responding to Delaware Court Ruling
The swift change in SpaceX's incorporation location from Delaware to Texas closely follows a Delaware judge's invalidation of Elon Musk's $56 billion compensation package at Tesla.
The judge's decision, prompted by a shareholder lawsuit, argued for insufficient disclosure of Musk's ties with directors during the package negotiation, leading to stockholder approval. As per a Fox News report, the judgment also emphasized that performance targets are easier than disclosed, and internal projections indicate Musk's qualification for substantial portions of the package.
The Tesla CEO and founder criticized the ruling, advising against incorporating companies in Delaware and signaling a poll on X about Tesla's potential relocation to Texas. The poll received overwhelming support for the move. Elon Musk promptly announced Tesla's intention to hold a shareholder vote to transfer its incorporation to Texas.
The relatively swift shift in SpaceX's incorporation, facilitated by its status as a privately held company, reflects the flexibility allowed in the process. Musk celebrated the occasion by sharing the SpaceX logo against the backdrop of the Texas silhouette, underscoring the company's transition from Delaware. This move aligns with Musk's broader shift in corporate strategy and an apparent preference for the business-friendly environment of Texas.
— Elon Musk (@elonmusk) February 15, 2024
Intuitive Machines Launches Lunar Mission via SpaceX Rocket
In related news, Houston-based Intuitive Machines launched its first lunar lander, Odysseus, from Cape Canaveral, Florida. According to the BBC, a SpaceX Falcon 9 rocket was utilized in the mission to land near the moon's south pole on Feb. 22.
Notably, if successful, it would mark the first instance of a private company achieving a lunar spacecraft landing.
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