Elon Musk’s rocket company SpaceX has transferred its incorporation from Delaware to Texas, the CEO and co-founder posted on X.
The move comes just weeks after a Delaware judge struck down Musk’s $55.8 billion pay package as CEO of Tesla, prompting the billionaire to lash out against the state on social media, urging other companies to depart Delaware as well.
“SpaceX has moved its state of incorporation from Delaware to Texas!” Musk wrote in a post on Tuesday, adding, “If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible.”
At the root of Musk’s ire is a lawsuit filed by a Tesla shareholder, Richard Tornetta, in 2018 , accusing Musk and Tesla’s board of directors of breaching their fiduciary duties to the company and its stockholders when they signed off on a multibillion-dollar pay plan agreement allegedly resulting in the unjust enrichment of Musk.
After failed attempts by Tesla to dismiss the lawsuit, Musk testified in November that he had no involvement in setting the terms of the payout. In January, however, Delaware Chancery Court Judge Kathaleen McCormick struck down the record pay package , ruling that the negotiation process was “flawed” and the price “unfair.”