Billionaire Elon Musk is urging businessmen to not incorporate in the state of Delaware — and if they do, to move out as soon as possible.
"SpaceX has moved its state of incorporation from Delaware to Texas! If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible," Musk said on his X platform, formerly known as Twitter.
Musk hit the blue state hard Wednesday, announcing that he had moved his rocket company SpaceX from Delaware, its state of incorporation, to red state Texas.
The SpaceX CEO included a photo of his letter from the state of Texas accepting his company as incorporated in the Lone Star State.
Last week, Musk's brain-chip implant company, Neuralink, also changed its location of incorporation from Delaware to Nevada.
The move comes after a Delaware judge invalidated his $56-billion pay package as the founder and CEO of electric vehicle maker Tesla drove the company’s market valuation to record highs, once crossing over a trillion dollars.
"The public vote is unequivocally in favor of Texas! Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas," Musk said on X earlier this month, after 87% respondents supported the move.
Delaware, home state of President Biden, has long been criticized for its liberal and sometime anti-business politics.
Last year, Fox News settled in Delaware court a lawsuit by Dominion Voting Systems for $787 million for its reporting on the 2020 election.
Soon after, Fox’s former chief counsel sharply criticized the courts there, saying its rulings “called into the fundamental fairness and integrity of the Delaware civil justice system.”
Thomson/Reuters contributed to this story.
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