After Neuralink, Elon Musk's SpaceX Files To Shift Incorporation From Delaware To Texas Amid Tesla Pay Package Dispute
Portfolio Pulse from Benzinga Neuro
SpaceX, owned by Elon Musk, has filed to change its incorporation location from Delaware to Texas, following a similar move by Neuralink. This decision comes after a Delaware court ordered Tesla to revoke Musk's 2018 pay package. Musk has been vocal about his dissatisfaction with the Delaware court and has urged other companies to relocate from Delaware. Neuralink recently moved its incorporation from Delaware to Nevada. Additionally, SpaceX announced a controlled descent of about 100 Starlink satellites due to a potential issue.
February 15, 2024 | 1:04 am
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Tesla Inc. faces a potential impact from the Delaware court's decision to revoke Musk's pay package and Musk's subsequent actions to relocate his companies' incorporations.
The relocation of SpaceX and Neuralink, along with Musk's recommendation for other companies to leave Delaware, could signal a broader strategy that might include Tesla. However, the direct impact on Tesla's stock price in the short term is uncertain, as the move is more about corporate governance and legal strategy than immediate financial performance. The situation warrants close monitoring, especially with the planned shareholder vote on Tesla's incorporation relocation.
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