Tesla Inc is set to proceed swiftly with plans to relocate its state of incorporation from Delaware to Texas, CEO Elon Musk announced in a post on X on Thursday.
This decision follows closely on the heels of a Delaware judge’s dismissal of Tesla’s record-breaking $56 billion pay package, which the judge deemed exorbitant and unfair to shareholders.
In response to the court ruling, Musk took to social media platform X, advising against incorporating companies in Delaware and initiating a poll to gauge support for Tesla’s relocation to Texas. Overwhelmingly, more than 87% of the over 1.1 million votes cast favored the move.
“The public has spoken, and the consensus is clear: Texas is the preferred choice! Tesla will promptly proceed with plans to hold a shareholder vote on transferring its state of incorporation to Texas,” Musk affirmed in his latest X post.
Tesla had previously shifted its corporate headquarters from California to Texas in 2021, a move precipitated by Musk’s critique of California’s regulatory framework and taxation policies.
