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Elon Musk urges Tesla investors to move the company’s listing to Texas after a Delaware court rules that Tesla should not receive billions of dollars in compensation I am asking you to decide whether or not.
The electric car company’s CEO said early Thursday that Tesla will seek a shareholder vote on whether to change its corporate registration to Texas, where its physical headquarters are located.
“Tesla will immediately hold a shareholder vote to move its state of incorporation to Texas.” Mr Musk wrote on his social media platform X, formerly known as Twitter.
Mr. Musk had Survey X users When asked the same question earlier, 87.1% of the 1.1 million respondents voted yes. “The people’s vote is unequivocally in favor of Texas!” he wrote.
Musk has previously polled people on X before making decisions, and in 2021 he moved Tesla’s headquarters from California to Austin, Texas.
His announcement comes after a judge in Delaware, where the company is currently registered, ruled Tuesday that Musk is not entitled to a landmark compensation package that could exceed $55 billion determined by Tesla’s board of directors. This was done in response to the ruling.
After the verdict, Musk expressed his displeasure on social media.
“Never incorporate a company in Delaware,” he wrote in one post. He later added, “If you want your shareholders to decide things for you, I recommend incorporating in Nevada or Texas.”
The ruling comes five years after shareholders filed suit alleging that Musk and Tesla’s directors breached their duties and that his pay package was the product of sham negotiations with directors who were not independent of him.
The defense countered that the pay plan was fairly negotiated by the compensation committee, whose members were independent and had high performance milestones.
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