It’s been a whirlwind week for Elon Musk who was ordered by a federal judge to testify in the SEC’s probe of his purchase of Twitter (now X).
Now, Musk is making a major move. The world’s richest person is converting Space X’s incorporation from Delaware to Texas.
On Wednesday, the billionaire took to X to share the news.
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. pic.twitter.com/B7FLByL2dY
— Elon Musk (@elonmusk) February 15, 2024
“SpaceX has moved its state of incorporation from Delaware to Texas,” Musk wrote on the social media platform, accompanied by a photo of the documentation. “If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible.”
The decision comes after a Delaware judge voided Musk’s $56 billion Tesla compensation package after a shareholder lawsuit focused on his compensation and transparency.
Musk also decided to poll his followers as to whether or not Tesla should change its incorporation state to Texas, to which the majority answer was yes.
The public vote is unequivocally in favor of Texas!
Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas. https://t.co/ParwqQvS3d
— Elon Musk (@elonmusk) February 1, 2024
Musk also changed the incorporation state of his neurotech company, Neuralink, out of Delaware to Nevada last week.
Musk has been battling with the state of Delaware for months. In January, Musk posted on X: “Never incorporate your company in the state of Delaware.”
The Musk Ruling ‘Changed Everything’
“Shark Tank” star Kevin O’Leary said the ruling on Musk’s testimony has “changed everything” in regards to Delaware being the gold standard state for corporations to incorporate.
“This changed everything as far as I’m concerned,” O’Leary said on FOX Business’ “The Big Money Show,”. “The traditional place to incorporate was always Delaware because of stable policy, we never had cases like this that questioned the will of directors or compensation of audit committees.”
Related: Judge Orders Elon Musk to Testify in SEC Probe Over Twitter Acquisition
Musk and the SEC have less than one week to agree on a time to schedule the billionaire’s testimony.
It is unclear when Musk plans to hold the shareholder meeting to move Tesla’s incorporation to Texas.
Source: entrepreneur.com