SpaceX CEO Elon Musk announced Wednesday night that the company converted its registration state from Delaware to Texas after a court in Delaware struck down his massive compensation package at Tesla, another one of the billionaire’s ventures.
"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 in a post on X, formerly Twitter.
SpaceX’s move comes a little more than two weeks after a Delaware judge voided Musk’s $56 billion compensation package at Tesla, the EV-maker Musk founded and serves as CEO of. Musk’s Tesla compensation package was by far the largest ever provided to an executive and played a major role in making him one of the world’s wealthiest individuals.
ELON MUSK’S $56 BILLION PAY PACKAGE VOIDED BY JUDGE
The ruling stemmed from a lawsuit brought by a shareholder who argued Musk’s close ties with directors who negotiated the bumper package weren’t properly disclosed ahead of a stockholder vote to approve the deal.
The judge also found that the performance targets in the compensation package were easier to meet than the company was acknowledging and that internal projections showed Musk was already on track to qualify for large portions of the package.
The plan gave Musk access to Tesla stock at heavily discounted prices. It was divided into 12 tranches with escalating financial and operational goals – though it required him to hold acquired stock for five years.
TESLA TO TEXAS? ELON MUSK ANNOUNCES MAJOR SHAREHOLDER VOTE
Musk slammed the ruling, posting on X that entrepreneurs and founders should "never incorporate your company in the state of Delaware" and posted a poll for the platform’s users about whether Tesla should relocate to Texas – a proposition respondents overwhelmingly endorsed.
"The public vote is unequivocally in favor of Texas!" Musk declared after the vote closed. "Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas."
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SpaceX’s status as a privately-held company allowed Musk and the space company’s leadership to expedite the process of changing its state of incorporation.
Musk celebrated the occasion by posting the SpaceX logo emblazoned on the silhouette of Texas.
FOX Business’ Chris Pandolfo contributed to this report.
