Musk encourages companies to incorporate in Texas after SpaceX moves from Delaware

SpaceX CEO Elon Musk reincorporated the company in Texas after it was originally incorporated in Delaware .

“If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible,” Musk wrote on X, along with a photo of SpaceX’s certificate of conversion.

Musk reincorporated his social media platform X in Nevada after acquiring it in 2022. However, his electric car company, Tesla, is still incorporated in Delaware even after a judge there denied Musk’s $56 billion compensation package in a lawsuit from one of Tesla’s shareholders last month.

Delaware is known as a national hub for business incorporation due to its over 220-year-old Court of Chancery. Its website describes itself “as the nation’s preeminent forum for the determination of disputes involving the internal affairs” of various businesses nationwide.

“Its unique competence in and exposure to issues of business law are unmatched,” the website reads.

Already, gambling platform DraftKings has similarly moved out of Delaware into Nevada. Tesla is likely to become Musk’s third company to reincorporate.

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