Gabriel Walker 
Feb 02, 2024
Elon Musk has announced to get a shareholder vote as he plans to immediately move Tesla's legal home from the US state of Delaware to Texas.
Musk's decision comes on the heels of the cancellation of his $55.8bn (£44bn) Tesla pay deal in Delaware on Wednesday (January 31, 2024).
Following the judge's ruling, he posted on his social media platform X (formerly Twitter), "Never incorporate your company in the state of Delaware," hinting at his intentions to move the legal home away from the state of Delaware.
Read more: Elon Musk, Tesla board must strategise after $56bn setback — Here's why
Judge Kathaleen McCormick during the hearing said Tesla directors — who decided on the pay deal in 2018 — were "perhaps starry eyed" due to Mr Musk's "superstar appeal" and did not viably take shareholders into confidence, terming the deal "unfathomable" and ruled it should be cancelled, BBC reported.
The largest pay deal in US corporate history was awarded, making Mr. Musk the wealthiest person in the world. Tesla's compensation package linked Mr. Musk's pay to performance goals, such as the company's stock price and profitability, with no salary involved.
A shareholder, Richard Tornetta, filed a lawsuit claiming that the payment was excessive, despite only owning nine Tesla shares. After the court's decision, Mr. Musk conducted a poll on his social media platform X (formerly Twitter), asking whether Tesla should change its state of incorporation to Texas.
The poll received over 1.1 million votes, with more than 87% in favor of the change. "The public vote is unequivocally in favour of Texas!," Musk announced on X. The EV manufacturing company has a "gigafactory" for electric cars in Texas, which the company plans to expand.
