Billionaire entrepreneur Elon Musk announced on Wednesday that he will be changing SpaceX’s official state incorporation from Delaware to Texas.
The decision to leave Delaware coincides with a recent legal ruling that favored a Tesla shareholder’s complaint regarding Musk’s compensation package. Musk also referenced a similar Delaware court decision involving TripAdvisor, where a judge ruled against the company’s substantial compensation package.
“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 said.
This move comes as no surprise given Musk’s past criticisms of liberal-ran states and how the policies they enact are not as conducive for business as more conservative states like Texas. In 2021, Musk announced that he would be moving Tesla’s headquarters from California to Texas, blaming the state for poor leadership and disproportionate response to the COVID-19 pandemic.
In typical Musk fashion, the owner of X engaged with his followers on social media, conducting a poll on whether Tesla should also shift its incorporation to Texas. Unsurprisingly, the majority of respondents—87% of over one million users—expressed support for such a move.
“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,” Musk said after the poll ended.
Musk’s decision to move another one of his multi-billion dollar businesses to Texas is part of a broader trend of businesses favoring conservative-leaning states like Texas over states such as Delaware and California. The allure of lower taxes, fewer regulatory hurdles, and a more business-friendly environment makes Texas an attractive destination for companies seeking to thrive and innovate.
This piece first appeared at TPUSA.
