Recently, a judge in the US state of Delaware voided the $56 billion compensation package of Tesla Chief Executive Officer Elon Musk, siding with a shareholder who claimed the entrepreneur was overpaid. Following this, the billionaire stated that one should “never incorporate your company in the state of Delaware”. “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters,” he said in another post.
In keeping with his unique approach to making decisions, Mr Musk launched a poll on X to discuss whether or not Tesla should change its state of incorporation. He wrote, “Should Tesla change its state of incorporation to Texas, home of its physical headquarters?” Since being shared seven hours ago, 88 per cent of 6,56,805 people voted “yes”.
Should Tesla change its state of incorporation to Texas, home of its physical headquarters?
— Elon Musk (@elonmusk) January 31, 2024
The post has also amassed a variety of reactions on the microblogging platform.
“Yes. Good choice,” said a user.
Another added, “Yes, and we will protect the border while we are there!”
Meanwhile, Chancery Court Chief Judge Kathaleen St. J. McCormick on Tuesday agreed with a Tesla investor who claimed the 2018 pay package failed to clearly show what was required of Mr Musk to earn the money and that the board was rife with conflicts of interest when it approved the deal to retain him as chief executive officer.
The ruling threatens to drop Mr Musk to the third-richest person in the world, after spending the past couple of years as number one. The judge’s decision also comes just days after Mr Musk told analysts he wants to expand his stake in the electric carmaker to avoid being ousted, to maintain control of the company and expand further into artificial intelligence, as per Bloomberg.