Delaware played politics with Musk over a business decision and it will cost them.

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In a bold move, SpaceX, Elon Musk’s aerospace company, has officially shifted its state of incorporation from Delaware to Texas. The decision, conveyed through a filing with the Texas Secretary of State, comes amid a reported feud between Musk and Delaware, which played politics with Musk over a business decision, and it will cost them. This has prompted the entrepreneur to encourage other companies registered in the state to consider relocating.

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Musk expressed his sentiments on social media platform X, recommending businesses to move away from Delaware. The SpaceX CEO also shared a certificate from the Texas Secretary of State’s office acknowledging the filing.

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This move aligns with a broader trend among businesses looking for alternatives to Delaware, which has historically held a dominant position in U.S. corporate law. TripAdvisor, under media executive Greg Maffei, is pursuing reincorporation in Nevada, while Elon Musk previously shifted Twitter to X in Nevada. The competition among states, particularly Texas and Nevada, to attract businesses reflects a changing landscape in corporate preferences and legal environments.

Sources:

https://www.forbes.com/sites/siladityaray/2024/02/15/musk-says-spacex-has-moved-state-of-incorporation-to-texas-amid-feud-with-delaware/?sh=2d2bb852386f

https://www.wsj.com/business/elon-musk-isnt-the-only-billionaire-fighting-delawares-grip-on-u-s-business-e9fe299a