SpaceX Rockets To A NEW State: Elon Musk's Aerospace Giant Shifts State Of Incorporation

By Greg Moriarty | Friday, 16 February 2024 04:30 PM
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SpaceX, the aerospace manufacturer and space transportation company founded by Elon Musk, has announced its move of "state of incorporation" from Delaware to Texas.

Musk shared an image of a letter from Texas Secretary of State Jane Nelson, confirming and accepting the filing.

In a post on X, formerly known as Twitter, Musk encouraged other companies to follow suit and relocate their incorporation to Texas "as soon as possible."

This decision comes after Chancellor Kathaleen St. Jude McCormick ruled on January 30th that the board of directors of Tesla, the electric car company also led by Musk, had failed to provide adequate justification for a $56 billion payout to Musk. The compensation had been challenged by a shareholder under a provision of Delaware law, according to court documents. In response to the ruling, Musk took to X to advise against incorporating companies in Delaware, stating, "Never incorporate your company in the state of Delaware."

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In addition to this development, it is worth noting that the Justice Department filed a lawsuit against SpaceX in August, alleging discrimination against refugees and asylum seekers. However, SpaceX has not yet responded to a request for comment from the Daily Caller News Foundation regarding this matter.

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The move of SpaceX's state of incorporation to Texas signifies a significant shift for the company. By relocating, SpaceX joins a growing number of businesses that are choosing Texas as their new home. This decision may have various implications, including potential tax benefits and a more favorable regulatory environment.

As SpaceX continues to make strides in the aerospace industry, this move could further solidify its presence and influence in the Lone Star State.

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