Elon Musk in a post on X, announced that SpaceX and Neuralink have been relocated to Texas and Nevada respectively. He also noted that Tesla’s shareholders will vote on making the same move and have the company relocated to a different state.
Musk also recommended other firms move away from Delaware. “If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible,” he wrote.
Many big US corporations, including Amazon, are registered in Delaware since it is known for having light taxation.
On 30 January, Judge Kathaleen McCormick found that Tesla directors, who negotiated Musk’s pay package (USD$55.8 billion) in 2018, were “perhaps starry-eyed” due to his “superstar appeal” and did not fully inform shareholders. She said the deal was “unfathomable” and ruled it should be canceled. The pay deal was the biggest to date in US corporate history, helping to make Musk the richest person in the world.
Tesla’s pay package tied Musk’s compensation to performance targets, such as the firm’s share price and profitability, but he does not receive a salary.
A shareholder, Richard Tornetta, filed the lawsuit, who argued that it was an overpayment. Despite owning just nine Tesla shares, Tornetta launched legal action calling for the award to be rescinded.
Following the ruling, Musk launched a poll on X, asking if Tesla should change its state of incorporation to Texas. The poll had more than 1.1 million votes with over 87% voting in favor of the change.
“The public vote is unequivocally in favor of Texas!,” Musk posted on X.
The electric carmaker moved its corporate headquarters from California to Texas in 2021.
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