Elon Musk is now looking to move Tesla’s stakes from Delaware to Texas, after a state court ruling voided his $55.8 billion pay package.
“Never incorporate your company in the state of Delaware,” Musk wrote after the decision.
Also on X, he posted a poll asking whether Tesla should “change its state of incorporation to Texas, home of its physical headquarters?” After 87 percent of the voters answered yes, Musk said that Tesla will move immediately to hold a shareholder vote to transfer the state of incorporation to Texas.
Judge Kathaleen McCormick ruled that Musk’s $55.8 billion pay package was unfair to shareholders and said that most of the company’s board members “were beholden to Musk or had compromising conflicts.” She concluded that the deal was “unfathomable.”
According to the BBC, the pay deal would have been the biggest to date in the U.S. corporate history, and would have helped to make Musk the richest person in the world.
Last year, Texas enacted a law to create business courts that will hear corporate cases. According to Ars techinca, Musk hopes that the New Texas Courts will be more suited to his personal interests.
“Elon Musk’s plan to change Tesla’s state of incorporation from Delaware to Texas is typical behavior for the entrepreneur who always looks for an alternative if he can’t get what he wants,” said Aj Bell investment analyst Dan Coatsworth.