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LATEST NEWS

  • Marijan Hassan - Tech Journalist

Elon Musk Moves SpaceX and Neuralink away from Delaware after state judge voided his $56bn pay package


It was only a matter of time before Musk responded after the legal developments in Delaware. In his typical dramatic fashion, the tech mogul has responded by moving the incorporation of two of his companies, SpaceX and Neuralink, from Delaware to Texas and Nevada respectively.



Musk's decision comes in the wake of a ruling by a Delaware judge invalidating his unprecedented $56 billion pay package from Tesla. The CEO is now rallying other companies to also move away from Delaware.


“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 wrote on X noting that he was also considering relocating Tesla and would hold a shareholder vote to move the company’s state of incorporation to Texas.


“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 wrote.


While Delaware's corporate-friendly legal framework has long been favored by businesses, Musk's recent experiences highlight the potential drawbacks of the state's jurisdiction, particularly in high-stakes legal battles.


It also represents a growing trend among entrepreneurs seeking regulatory flexibility and shareholder-centric governance structures. TripAdvisor, controlled by Greg Maffei, had in the recent past also tried to relocate its incorporation from Delaware to Nevada.


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