Tesla Inc is set to undergo a significant corporate change as CEO Elon Musk announces plans to expedite a shareholder vote on relocating the electric vehicle (EV) maker’s state of incorporation from Delaware to Texas. This decision follows a recent legal development where a Delaware judge dismissed Musk’s $56 billion pay package, deeming it an “unfathomable sum” that disadvantaged shareholders.
In response to the court ruling, Musk took to social media, expressing his stance: “Never incorporate your company in the state of Delaware.” Subsequently, he initiated a poll on X (formerly known as Twitter), seeking public opinion on whether Tesla should shift its state of incorporation to Texas. The poll garnered substantial participation, with over 1.1 million votes, and the results were overwhelmingly in favor of the move, with more than 87% supporting the relocation.
In his latest post on X, Musk declared, “The public vote is unequivocally in favor of Texas! Tesla will move immediately to hold a shareholder vote to transfer the state of incorporation to Texas.” This swift response underscores Musk’s commitment to aligning corporate decisions with the sentiments of Tesla’s shareholders. The move to shift incorporation to Texas is poised to have significant implications for the EV maker’s operations and legal standing.
