Elon Musk considers changing Tesla's state of incorporation to Texas
The entrepreneur made a poll on X asking if he should incorporate the electric vehicle company in The Lone Star State. The public voted overwhelmingly in favor of the move (87.1%).
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Elon Musk is considering changing Tesla's state of incorporation to Texas. The entrepreneur made a poll on his social network, X, if he should reincorporate his electric vehicle company. Voters were overwhelmingly in favor of the move, with 87.1% in support, compared to just 12.9% against.
The survey came shortly after Delaware rescinded the $56 billion pay package the electric vehicle company awarded to Elon Musk in 2018. The sum, called the largest compensation in public corporate history, was deemed excessive by Chancery Court Chancellor Kathaleen McCormick.
The judge claims that the company's board of directors was not able to demonstrate "that the compensation plan was fair," per CNBC. Furthermore, they did not provide evidence that they had even negotiated with Musk.
The decision sparked anger from Musk who, again, turned to X to show his dissatisfaction: "Never incorporate your company in the state of Delaware," Musk said. Minutes later, he stated that his preference for business incorporation would be either Nevada or Texas:
Musk intends to follow his own advice, as he stated after an overwhelming majority voted that Tesla be incorporated in Texas. He reported that he would hold a shareholder meeting as soon as possible to discuss the matter:
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