SpaceX files to move incorporation site from Delaware to Texas | Hacker News Reader

SpaceX files to move incorporation site from Delaware to Texas

cnbc.com

29 pointspseudolus14 comments

The article says he’s moving Neuralink to Nevada. Unrelated to Musk, Nevada is known to have favorable laws for shady executives - they can’t get sued by shareholders as easily, so some known for being funky with their numbers have moved incorporation there publicly in the past.

https://corp.delaware.gov/stats/ says 68% of Fortune 500 and 79% of recent IPOs incorporated there. Presumably there's a reason for this; what is SpaceX giving up in this move?

Texas is trying to become the next Delaware and attract companies to incorporate

The biggest thing is a separate business court system — so business disputes don’t have to be delayed by criminal or civil cases that may clog the pipeline. Texas is setting one up too. I think this is the famed chancery court.

https://www.marketplace.org/2024/02/02/delaware-incorporated...

What about that Texas county that was a favorite of patent trolls, was that ever resolved somehow?

I remember the XPlane creator was sued for patent violations and he went to the listed headquarters of the company and it was just an empty office in Texas. There were many companies that listed the same empty office as their headquarters, like, hundreds of companies with the same run-down empty "headquarters".

Not too different from Delaware?

https://www.businessinsider.com/building-wilmington-delaware...

> what is SpaceX giving up in this move?

likely a lot of future money and shares that will be going into Elon's pockets - the Delaware hate came from the courts responding to a shareholder lawsuit about his pay package.

Well, if Tesla’s anything to go by, Musk is probably doing this to grab more money.

The Delaware courts recently slapped his gargantuan pay demand down, guess he feels that Texas will let it ride and he’ll get his billions that way.

Musk already owns a majority of voting shares in SpaceX.

spacex isn't the only company that he has a stake in that is now leaving Delaware. the fact that he has majority of voting rights just makes this one easier.

Companies incorporate in Delaware because the state has the most mature corporate laws in the country.

Elon recently got burned by the Delaware courts because they ruled his Tesla salary package illegal, so he is moving his companies out of there.

So basically a reactive move made in a fit of pique.

Yup, man child throwing his toys out of the pram

56 billion is not a toy

The courts in Delaware are master of corpo laws and deal with cases fairly and quickly and cases will not be pushed out in favor of other type of cases

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