Elon Musk says the people have spoken, and he'll make moves to shift Tesla to be incorporated in Texas
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- Elon Musk is done with the state of Delaware.
- Musk says he will call a shareholder vote to transfer Tesla's incorporation to Texas.
- The decision comes after a Delaware judge voided his $55 billion compensation package at Tesla.
Elon Musk, the CEO of Tesla, says he's going ahead with plans to move Tesla from Delaware and incorporate it in Texas.
"The public vote is unequivocally in favor of Texas!" Musk wrote on X Wednesday night, referencing the poll he posted on the platform on Tuesday.
Musk's poll asking whether he should shift Tesla's state of incorporation to Texas, where it's currently headquartered, received 1,102,554 votes, 87.1% of which were "yeses."
"Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas," Musk wrote on X.
— Elon Musk (@elonmusk) February 1, 2024The public vote is unequivocally in favor of Texas!
Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas. https://t.co/ParwqQvS3d
Musk's announcement comes after a Delaware judge voided his $55 billion compensation package at Tesla.
Musk isn't paid a salary for his work as Tesla's CEO. Instead, his pay package is based on goals tied to the company's financial growth.
Under the terms of the package, Musk would be granted stock equivalent to 1% of Tesla's outstanding shares whenever he met the 12 tranches of growth targets.
The ruling in Delaware could threaten Musk's title as the world's richest person, given that most of his wealth is tied to his equity in Tesla.
"Never incorporate your company in the state of Delaware," Musk wrote on X on Tuesday.
Musk appears to have a strong affinity for the Lone Star State. Bloomberg reported in December that the billionaire was planning to create his own university in Austin.
In January, Bloomberg reported that X planned to hire 100 employees for a new content-moderation center in Austin.
Representatives for Tesla did not immediately respond to a request for comment from Business Insider sent outside regular business hours.
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Kevin was a reporter at Business Insider's Singapore bureau. He reported primarily on the ins and outs of the business world, whether it be breaking news, covering CEO moves, tracking quarterly earnings, or writing explainers.He also covered careers and workplace issues, and has written about career transitions, the FIRE lifestyle, the college internship arms race, and the job hunt struggles faced by computer science majors.BackgroundKevin joined Business Insider's Singapore bureau in 2023. Before that, he was a civil servant at Singapore's Ministry of Sustainability and the Environment. He was appointed to the Singapore government's Public Service Leadership Programme, a talent development programme that develops capable and talented individuals for key leadership positions in the public service.Kevin’s journalism career began in college, where he first worked as a researcher for Channel NewsAsia and The Economist, and later as an intern reporter at Bloomberg News. In 2017, the Queen Elizabeth Diamond Jubilee Trust awarded him the Leading Change Journalism Bursary. His stories have appeared in numerous publications, including Fortune, The Japan Times, and The Edge Singapore.Kevin holds a bachelor’s degree in business administration from the National University of Singapore, where he was an NUS Merit Scholar. He was also the recipient of the PwC Whole Leadership Award, the NTUC Income Prize, the CFA Singapore Prize, and the Outstanding Undergraduate Researcher Prize.
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