Elon Musk, owner of Tesla and the X (formerly Twitter) platform, attends a symposium on fighting antisemitism titled ‘Never Again : Lip Service or Deep Conversation’ in Krakow, Poland on January 22nd, 2024. Musk, who was invited to Poland by the European Jewish Association (EJA) has visited the Auschwitz-Birkenau concentration camp earlier that day, ahead of International Holocaust Remembrance Day.
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Musk announced last week that Tesla will hold a shareholder vote to move the incorporation of the company to its headquarters in Texas. His plans come after he disagreed with a court decision in Delaware, the state where the company is incorporated.
The CEO of Tesla previously asked the public on X whether or not he should shift the incorporation of the EV company from Delaware to Texas, in which he received over 1.1 million responses. Musk referenced the poll on Thursday, February 1, and wrote, “The public vote is unequivocally in favor of Texas!”
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On Tuesday, January 30, a Delaware judge denied his nearly $56 billion pay package at Tesla. The billionaire is not paid a salary for his work leading Tesla, his pay package is based instead on goals tied to the company’s financial growth, Business Insider reports.
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Because of this, the Delaware ruling could impact Musk’s title as the world’s richest person, since most of his wealth is tied to his equity in Tesla.
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“Never incorporate your company in the state of Delaware,” Musk posted to X on Tuesday.
However, even if Tesla were to incorporate in Texas, new laws like House Bill 19, which starts in September and creates Texas business courts, could present a similar issue for Musk in the future. As Texas continues to attract high-profile businesses like Tesla, Samsung, and Google, CBS Austin reports that these specialized courts will handle big business issues including shareholder derivative actions, breaches of duties, security actions, and certain business transactions over $10 million.
Texas business court judges will be appointed by Governor Greg Abbott and are expected to be located in Austin, Houston, Dallas, Waco, and San Antonio, and over time span to 11 judges across the state.
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