Musk says Tesla shareholders to vote on moving incorporation to Texas By Reuters

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© Reuters. FILE PHOTO: Tesla electric vehicles (EVs) fast-charge using Tesla Superchargers at a Buc-ee’s travel center and gas station in Baytown, Texas, U.S., March 18, 2023. REUTERS/Bing Guan/File Photo

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(Reuters) -Tesla Inc will move immediately to hold a shareholder vote to transfer the electric vehicle (EV) maker’s state of incorporation to Texas from Delaware, CEO Elon Musk said in a post on X on Thursday.

The billionaire’s comments come two days after a Delaware judge tossed out his record-breaking $56 billion Tesla (NASDAQ:) pay package, calling the compensation granted by the EV maker’s board “an unfathomable sum” that was unfair to shareholders.

After the ruling, Musk posted on social media X, “Never incorporate your company in the state of Delaware.”

He then launched a poll on X asking if Tesla should change its state of incorporation to Texas. More than 87% of the over 1.1 million votes cast were in favor of a shift.

“The public vote is unequivocally in favor of Texas! Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas,” Musk said in his latest post on X, formerly known as Twitter.

Tesla moved its corporate headquarters to Texas from California in 2021, after Musk criticized California’s regulations and taxes harshly.

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