In a strategic move, SpaceX, the aerospace company founded by Elon Musk, is gearing up to relocate its business incorporation from Delaware to Texas, as disclosed in a filing to the Texas Secretary of State on Wednesday. This decision marks a significant shift in the corporate landscape and reflects Musk’s firm resolve to navigate away from legal entanglements.

The impetus behind this relocation stems from a recent setback faced by Musk in a Delaware court. A judge ruled against Musk’s 2018 pay package for Tesla, siding with a shareholder who contested its extravagance. The verdict, potentially imperiling over $51 billion of Musk’s assets, prompted him to announce his intention to move business incorporations out of Delaware.

Delaware has long been favored by major corporations in the United States due to its favorable legal and tax frameworks. However, recent events have prompted a reevaluation of its desirability among business leaders like Musk.

In a series of tweets, Musk advocated for avoiding Delaware as an incorporation destination, recommending Nevada or Texas instead. Notably, Neuralink, Musk’s brain implant company, has already made the transition to Nevada, underscoring a broader trend away from Delaware.

The move aligns with Musk’s broader vision, evident in his efforts to seek shareholder approval to incorporate Tesla in Texas, where the company is headquartered. A recent poll initiated by Musk on X indicated overwhelming support for Texas as the preferred incorporation destination for Tesla.

With SpaceX now joining the exodus from Delaware, it underscores Musk’s commitment to streamlining operations and minimizing legal risks. As the tech mogul continues to reshape the corporate landscape, the relocation of SpaceX’s incorporation serves as a testament to the evolving dynamics of business governance and strategic decision-making in today’s fast-paced corporate environment.