Musk plans move of Tesla incorporation to Texas
Elon Musk has pledged to hold a shareholder vote on moving Tesla’s registration from Delaware to Texas after his $56bn (£44bn) pay package in 2018 was annulled by a state judge.
The billionaire said the electric car company would “move immediately” to hold a vote on shifting its incorporation to Texas after holding a public poll on his social media platform X, formerly known as Twitter.
His announcement came after a judge in Delaware, where the company is currently registered, ruled that he is not entitled to a landmark compensation package awarded by Tesla’s board of directors.
He asked on X: “Should Tesla change its state of incorporation to Texas, home of its physical headquarters?”
The result showed 87.1pc of voters thought Tesla should change states.
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Mr Musk, who has previously polled people on X before making decisions, posted on the social network to express his displeasure at the judgement on Tuesday.
“Never incorporate your company in the state of Delaware,” he wrote in one post.
He later added: “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters.”
Mr Musk is at risk of losing his position as world’s richest man to Amazon’s Jeff Bezos as a result of the Delaware court ruling, which effectively stripped him of almost a quarter of his wealth after describing the compensation agreement as “unfathomable”.
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It looks like moving to Texas will likely benefit him and the company. Delaware is losing its advantage by exerting control over business decisions.
See also:
Musk Gets Big ‘Yes’ Vote to Deepen Texas Ties After Pay Rejected
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