After verdict on bonuses: Elon Musk relocates SpaceX headquarters

How does a billionaire escape an unpleasant court ruling? He simply moves the headquarters of his own company and hopes for more lenient judges. At least that is the approach Elon Musk is planning with his space travel company SpaceX. This was preceded by a ruling in which the local court in Delaware rejected an attractive share option for Musk.

SpaceX moves on the spur of the moment

With SpaceX, Elon Musk has a successful aerospace company that is making a lot of money, especially with its satellite internet Starlink. Although it was recently announced that the company plans to send almost 100 of its satellites into self-destruction, it is likely to be replenished. According to the company’s plans, 200 more satellites are to be sent into orbit every month in future. But SpaceX is probably not only busy in orbit at the moment. The space company is also making headlines on Earth. On Wednesday, it surprisingly announced on Platform X that it intends to relocate its company headquarters.

Until now, it was located in the US state of Delaware. From now on, it will be located in Texas. In view of the fact that the electric mobility giant Tesla also has its headquarters in Austin, Texas, this is not surprising at first. However, the relocation is by no means due to Elon Musk wanting to bring his companies closer together. Rather, it is due to an explosive court ruling. In January 2024, the courts denied the controversial tech billionaire a share package that is said to be worth a whopping 56 billion US dollars.

Questionable decision

It is highly likely that the hot-headed move was more a matter of offended pride than mere practicality. After all, the US state of Delaware basically offered the best conditions. In addition to a business-friendly tax policy, SpaceX has previously enjoyed court rulings here that have tended to favor the aerospace company. However, this ruling was not about SpaceX itself, but primarily about Elon Musk as a person. And that’s where the fun seems to stop for the Tesla boss.

What’s behind the ruling?

The crux of the matter is the complaint filed by a SpaceX shareholder. He was of the opinion that Elon Musk illegally claimed shares worth a whopping 56 billion US dollars for himself. SpaceX linked the corresponding share option to milestones that Musk had to achieve with Tesla. The court obviously sided with the plaintiff, who emphasized that the tech billionaire’s influence in this decision was simply too great. His right to the share option was therefore forfeited. The fact that Musk is not happy about this decision is evident from the consequences he has drawn, and not just with SpaceX. In fact, he announced that he would be withdrawing his entire company from Delaware.

Tesla is an exception to this for the time being. Musk cannot simply relocate the company headquarters here. After all, the company is listed on the stock exchange, which is why investors have a say in such decisions. However, according to the tech billionaire, a corresponding application is still to follow. The process casts an extremely negative light on the already controversial Musk. After all, it seems as if he is fleeing from unpopular court rulings by moving to a state that is “more favorable” to him. Only time will tell whether this plan really works or whether Musk has not put obstacles in his own way with this hasty move.