Elon Musk Seeks to Relocate Tesla's Legal Headquarters to Texas

Entrepreneur Elon Musk has announced that Tesla will seek a shareholder vote to move its legal headquarters from Delaware to Texas. This decision comes after a judge in Delaware nullified Musk's $55.8 billion pay package from Tesla. Musk expressed his disapproval of incorporating companies in Delaware, a state known for its favorable tax environment and where multiple big firms, including Amazon, are registered. The judge ruled that Tesla directors did not adequately inform shareholders when negotiating the pay package, calling the deal "unfathomable" and ordering its cancellation. This pay package had established Musk as the wealthiest person globally, with estimates placing his net worth between $198 billion and $220 billion in November 2023. A shareholder lawsuit filed by Richard Tornetta, who argued for rescinding the award, prompted the legal action. Although Tornetta only owned nine Tesla shares, he managed to secure the ruling. Following the judge's decision, Musk conducted a poll on his social media platform X (formerly Twitter), where over 1.1 million votes were cast, with more than 87% voting in favor of relocating Tesla's incorporation to Texas. Tesla had previously moved its corporate headquarters from California to Texas in 2021, driven by Musk's discontent with California's tax policies and regulations. Musk's clashes with California officials during the early stages of the Covid-19 pandemic also factored into this decision. Tesla has an electric car facility in Texas, and the company plans to expand its presence in the state. This ruling is not Musk's first setback in Delaware, as the same judge presided over a lawsuit involving Twitter in July 2022, when Musk attempted to withdraw from the $44 billion purchase agreement. Despite Musk's arguments, the judge rejected them, and he ultimately acquired the company, now known as X.