Elon Musk announces big decision on Tesla move after costly legal loss

Georgetown, Delaware - Elon Musk on Thursday said Tesla will vote to move its state of incorporation, a day after a Delaware judge scrapped his $56-billion compensation package.

Tesla CEO Elon Musk said the company would vote on moving its state of incorporation to Texas after a Delaware judge scrapped his compensation package.
Tesla CEO Elon Musk said the company would vote on moving its state of incorporation to Texas after a Delaware judge scrapped his compensation package.  © Collage: REUTERS

"Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas," he announced on his social media platform X.

In a Wednesday ruling, Delaware Chancery Court Judge Kathaleen McCormick sided with a shareholder who claimed the Tesla CEO was overpaid, approving the annulment of Musk's 2018 humongous compensation agreement worth as much as $55.8 billion.

The world's richest person wrote shortly after the ruling: "Never incorporate your company in the state of Delaware."

Kourtney Kardashian cuddles baby Rocky in sweet tribute from Travis Barker
Kourtney Kardashian Kourtney Kardashian cuddles baby Rocky in sweet tribute from Travis Barker

He then launched a poll on X asking if Tesla should "change its state of incorporation to Texas, home of its physical headquarters?"

"The public vote is unequivocally in favor of Texas!" Musk posted, after more than 87% of the 1.1 million votes cast were in favor of the move.

McCormick said in her ruling that Musk's 2018 compensation plan was "the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude."

"The process leading to the approval of Musk's compensation plan was deeply flawed," she said, adding that the parties must now "confer" and submit a joint letter "identifying all issues, including fees, that need to be addressed to bring this matter to a conclusion at the trial level."

Cover photo: Collage: REUTERS

More on Elon Musk: