Elon Musk has announced Tesla will hold a vote on moving the company’s legal base to Texas after the state of Delaware threw out his
Elon Musk has announced that Tesla will vote on moving the company’s legal base to Texas after the state of Delaware abandoned its $56 billion pay package for the electric vehicle maker.
The world’s richest person, whose No. 1 status is threatened by the Delaware ruling, conducted a poll on X asking whether Tesla should change the company’s headquarters from Delaware to Texas.
With more than a million votes cast, the poll found 87% were in favor of the move. In his response on Thursday, Musk wrote on his handle.
On Tuesday, a Delaware judge called a 2018 stock-based package awarded to the Tesla boss “an unfathomable sum” that was unfair to shareholders and rejected the agreement.
Shortly afterward, Musk wrote on
Musk has close ties to Texas. He moved Tesla’s headquarters from Palo Alto, California, to the Texas city of Austin in 2021 after criticizing California regulations and taxes and also clashed with health officials over the reopening of a factory in Fremont early in the Covid pandemic.
One of the carmaker’s gigafactories is in Texas, where it is building a $1bn (£800m) lithium refinery. The goal is to produce enough battery-quality lithium for around one million vehicles by 2025.
Other Musk companies, including the rocket firm SpaceX and the tunnelling business the Boring Company, also have operations in Texas. Another Musk-related Texas expansion is under way at X, which he also owns, after the social media platform announced last month, it would open a content moderation office in Austin with 100 staff.
It was not immediately clear whether the Tesla board supported Musk’s X declaration on Thursday. The Delaware judge Kathaleen McCormick in her ruling on Tuesday, wrote that Musk, a 13% shareholder in Tesla, had “thick ties” with the directors negotiating his 2018 package and had “dominated the process that led to board approval of his compensation plan”.
Two weeks before the Delaware ruling, Musk challenged the board by
According to the Bloomberg Billionaires Index, Musk is worth $202 billion, more than luxury goods magnate Bernard Arnault at $183 billion and Amazon founder Jeff Bezos at $180 billion.