Home » Elon Musk Moves SpaceX’s Legal Domicile to Texas After Adverse Court Ruling

Elon Musk Moves SpaceX’s Legal Domicile to Texas After Adverse Court Ruling

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Elon Musk Moves SpaceX’s Legal Domicile to Texas After Adverse Court Ruling

Elon Musk Moves SpaceX’s Legal Domicile to Texas Following Court Ruling

In response to an adverse court ruling in Delaware, Elon Musk announced that his space company SpaceX has changed its legal address from Delaware to Texas. The move comes after a court decision prevented Musk from collecting a large block of Tesla shares.

Musk made the announcement on Wednesday night, stating on the X social network, “SpaceX has changed its state of incorporation from Delaware to Texas. If your company is still incorporated in Delaware, I suggest you move to another state as soon as possible.”

The ruling by Delaware Judge Kathaleen McCormick invalidated an agreement that would have given Musk millions of Tesla shares at a low price, citing concerns about shareholder interests not being respected. This decision came after shareholders accused Musk and Tesla directors of breaching their duties and conducting sham negotiations.

With Musk currently owning 13% of Tesla’s voting shares and aiming to increase his stake to 25% in the near future, the change of legal address to Texas could benefit him. After hearing the verdict, Musk also polled his X followers about moving Tesla’s headquarters to Texas, which received overwhelming support from the public.

Although Delaware has long been a preferred jurisdiction for large companies to register in the United States, Texas has gained favor due to its tax and legal advantages in recent years. The move by Musk’s companies, including Neuralink which also changed its state of incorporation from Delaware to Nevada, reflects a trend of companies seeking more favorable legal environments.

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As Musk continues to make strategic business moves, his decision to change SpaceX’s legal domicile to Texas could have broader implications for other companies incorporated in Delaware. It remains to be seen how this decision will impact the broader business landscape in the United States.

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