1. SpaceX filed to relocate its business incorporation from Delaware to Texas.
  2. The decision was prompted by a Delaware judge's nullification of Elon Musk's $55 billion Tesla pay package.
  3. Musk had previously moved Neuralink's incorporation from Delaware to Nevada.

SpaceX, initially based in Delaware, is seeking to relocate its business incorporation to Texas, according to Bloomberg. This decision follows CEO Elon Musk's public criticism of Delaware and a judge's ruling to nullify his $55 billion Tesla pay package.

Neither SpaceX nor the Texas Secretary of State responded immediately to Business Insider's request for comment. Musk announced the move to Texas on his social platform X (formerly Twitter), just weeks after a Delaware judge invalidated his Tesla pay package, a decision that jeopardized his position as the world's richest person. The ruling stemmed from a 2018 lawsuit by a Tesla shareholder who deemed the pay excessive and cited insufficient rationale from Tesla's board. Despite Tesla's potential to appeal, Musk voiced his dissatisfaction with Delaware's tax laws, advising against incorporating businesses there.

Musk conducted an informal poll on X, where respondents overwhelmingly favored Texas as Tesla's new location. While Musk relocated his Neuralink company's incorporation from Delaware to Nevada, transferring Tesla's registration might prove more complex due to its public status. Charles Elson, from the University of Delaware, cautioned against the move, citing the potential costs of establishing a new business court.

Despite these challenges, SpaceX already has significant operations in Texas, with plans for a $100 million office building near its Brownsville launch site. Moreover, Musk previously announced Tesla's headquarters relocation to Austin from Silicon Valley in 2021.