1 of 3 | Elon Musk said he will hold a shareholder vote on incorporating Tesla in Texas after a court in Delaware, where the company is currently incorporated, voided his $56 billion compensation package. File Photo by John Angelillo/UPI |
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Feb. 1 (UPI) -- Elon Musk, still fuming over a Delaware court ruling that nixed his compensation package from Tesla, said he will hold a shareholders meeting incorporating the company Texas after a vote on social media.
Musk launched a poll on the social media platform X, which he owns, after the Tuesday ruling asking whether the electric car giant should change its state of incorporation from Delaware to Texas, where its headquarters are located. The poll ended with 87% of participants voting that Tesla should incorporate in Texas.
"The public vote is unequivocally in favor of Texas," Musk said early Thursday on X. "Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas."
Musk posted the poll after Delaware Chancery Court Chancellor Kathleen McCormick on Tuesday annulled his $56 billion compensation package from Tesla's board of directors and ordered him to pay back the money he had already received, calling the 2018 deal "unfair" after a shareholding filed a lawsuit.
"Never incorporate your company in the state of Delaware," Musk posted on X after the verdict.
Musk has drawn federal scrutiny over his closely watched social media posts in the past. Last February, the Security and Exchange Commission declined Musk's attempt to change a settlement agreement over his past posts on X, formerly known as Twitter.
Musk got in trouble for a 2018 Twitter post where he falsely claimed he had secured funding to take Tesla private, which sent markets into a frenzy believing his comments were accurate. That led the SEC to intervene, limiting Musk to only post "accurate" information about the company on social media.
Since taking over X, Musk has turned to polls on the platforms to make several high-profile policy decisions.
In December 2022, shortly after completing the purchase of the platform, Musk announced he would step down as CEO after a poll encouraged him to do so.
He eventually hired Linda Yaccarino to replace him as the platform's leader.
Musk also restored access to the platform to former President Donald Trump after users voted in favor of allowing him back.
The potential move to incorporate Tesla in Texas comes after Musk decided to move the company's headquarters there in 2021.
Musk cited a lack of ability to expand due to housing costs surrounding its previous headquarters in Palo Alto, Calif., but it also came amid a feud between Musk and California after he was forced to shut the company's Fremont facility due to restrictions related to the COVID-19 pandemic.
