Elon Musk proposes Tesla move to Texas after Delaware judge voids $56 billion pay
Enlarge / Tesla CEO Elon Musk speaks at Tesla's "Cyber Rodeo" on April 7, 2022, in Austin, Texas. (credit: Getty Images | AFP/Suzanne Cordeiro)
Tesla CEO Elon Musk has had enough of Delaware after a state court ruling voided his $55.8 billion pay package. Musk said last night that Tesla will hold a shareholder vote on transferring the electric carmaker's state of incorporation to Texas.
Musk had posted a poll on X (formerly Twitter) asking whether Tesla should "change its state of incorporation to Texas, home of its physical headquarters." After over 87 percent of people voted yes, Musk wrote, "The public vote is unequivocally in favor of Texas! Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas."
Tesla was incorporated in 2003 before Musk joined the company. Its founders chose Delaware, a common destination because of the state's low corporate taxes and business-friendly legal framework. The Delaware government says that over 68 percent of Fortune 500 companies are registered in the state, and 79 percent of US-based initial public offerings in 2022 were registered in Delaware.