Musk Advises Companies to Shift Incorporation Away from Delaware as SpaceX Moves to Texas
Published Date – 15 February 2024, 11:30 AM
San Francisco: Elon Musk on Thursday said that his aerospace company SpaceX has moved its state of incorporation from Delaware to Texas.
“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 posted on X.
Earlier this month, the billionaire announced that Tesla will move immediately to hold a shareholder vote to change its legal home from the US state of Delaware to Texas.
This came after a judge in Delaware ruled that Musk’s $56 billion pay package is unfair and the Tesla board will need to come up with a new pay proposal.
After the ruling, the tech billionaire posted on social media: “Never incorporate your company in the state of Delaware.”
He later launched a poll on X, asking if Tesla should change its state of incorporation to Texas.
The poll received over 1.1 million votes, with more than 87 per cent supporting the reform.
“The public vote is unequivocally in favour of Texas! Tesla will move immediately to hold a shareholder vote to transfer the state of incorporation to Texas,” Musk posted.
Musk’s brain-chip implant company Neuralink has also changed its incorporation from Delaware to Nevada.
Meanwhile, SpaceX will send some 100 Starlink satellites to an early retirement after a flaw was identified.
The Starlink team identified a common issue in this subset of first-generation communication satellites that could “increase the probability of failure.”
The satellites will follow a safe, circular, and controlled lowering operation that should take approximately six months for most of the vehicles.
SpaceX has, to date, initiated controlled deorbits on 406 satellites out
of the nearly 6,000 Starlink satellites launched.
