Tech billionaire Elon Musk, angry about the US state of Delaware, has moved the official headquarters of his space company SpaceX to Texas. The 52-year-old is angry that a judge in Delaware does not want to grant him a share package worth around 56 billion dollars (approximately 52 billion euros) in the electric car company Tesla, which he also runs.
Musk had announced that he would also withdraw other companies in his area from Delaware, which is extremely popular as a corporate headquarters in the US. The tech billionaire and authorities in Texas released documents showing that SpaceX has been officially based there since Wednesday. SpaceX has long had a strong presence in the state: the Starship rocket and satellites of the Starlink communications system are built there and engines are developed and tested at various locations.
Neuralink moved to Nevada
Musk had already moved his brain implant company Neuralink from Delaware to Nevada last week. This is more difficult with Tesla: unlike SpaceX and Neuralink, the car manufacturer is listed on the stock exchange and any step would require shareholder approval. Musk announced a similar proposal, but so far it has remained that way.
Response to shareholder lawsuit
By withdrawing his companies from Delaware, Musk is responding to the court’s ruling on a shareholder lawsuit at the end of January. In 2018, Tesla promised him stock options worth up to $56 billion if ambitious targets for stock market value and corporate figures were achieved. A shareholder has filed a lawsuit. Musk has already received the options, but has not yet been able to cash them due to the legal dispute.
Judge Kathaleen McCormick in Delaware found that Musk had too much background influence in approving the compensation plan to be considered due process. Shareholders were told that some of those responsible for the decision at Tesla had close ties to Musk.
In the trial, the judge therefore ruled in favor of the plaintiff, who wants to terminate the agreement with Musk. She admitted that canceling the mega deal does not automatically result from the finding that the agreement was concluded under unfair circumstances. However, in Delaware, an annulment is the preferred remedy. “Plaintiff is entitled to an annulment,” she wrote in her 200-page ruling. Musk then declared that all companies must leave the state.
Delaware is a very popular corporate headquarters in the US due to its favorable tax conditions and corporate jurisdiction that has developed over the decades.
Source: Krone
I am an experienced and passionate journalist with a strong track record in news website reporting. I specialize in technology coverage, breaking stories on the latest developments and trends from around the world. Working for Today Times Live has given me the opportunity to write thought-provoking pieces that have caught the attention of many readers.
