Key Takeaways
- Tesla will soon hold a shareholder vote to transfer the electric vehicle maker’s state of incorporation to Texas, Elon Musk said in an X post Thursday.
- The announcement comes after a Delaware court struck down Musk’s $55.8 billion pay package from Tesla, finding it excessive.
- The order, which can be appealed, could take a large chunk of Musk’s wealth and threaten his standing as the world’s richest man.
Tesla (TSLA) will soon hold a shareholder vote to reincorporate in Texas, CEO Elon Musk said in a post on X (formerly Twitter) Thursday, after a Delaware court struck down his $55.8 billion pay package from Tesla.
The Chancery of the State of Delaware said Tuesday it found Musk’s compensation package from Tesla excessive, calling it “the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude” and ruled it unfair, noting that Musk held significant influence over Tesla’s board.
That decision, which may be appealed, could take a large chunk of Musk’s wealth and threaten his standing as the world’s richest man.
Not long after the court’s decision Tuesday, Musk took to X to post, “Never incorporate your company in the state of Delaware.”
Musk later conducted a poll on X asking whether users think Tesla’s state of incorporation should be moved to Texas. The poll received over 1.1 million votes, with 87.1% of respondents answering “Yes.”
“The public vote is unequivocally in favor of Texas,” Musk wrote.
Tesla moved its corporate headquarters to Austin, TX from Palo Alto, CA in 2021, after Musk criticized California’s regulatory and tax environment.
Tesla shares ticked 0.8% higher Thursday to $188.86 per share, though they’ve lost close to 24% of their value so far this year.