Today: 17 February 2025
2 February 2024
1 min read

Musk announces to shift Tesla’s incorporation to Texas  

After the ruling, the tech billionaire posted on social media: “Never incorporate your company in the state of Delaware.”…reports Asian Lite News

Tesla and SpaceX CEO Elon Musk has announced that Tesla will move immediately to hold a shareholder vote to change its legal home from the US state of Delaware to Texas.

This comes after a judge in Delaware ruled that Musk’s $56 billion pay package is unfair and the Tesla board will need to come up with a new pay proposal.

After the ruling, the tech billionaire posted on social media: “Never incorporate your company in the state of Delaware.”

He later launched a poll on his social media platform X, asking if Tesla should change its state of incorporation to Texas.

“Should Tesla change its state of incorporation to Texas, home of its physical headquarters?” Musk wrote on Wednesday. The poll received over 1.1 million votes, with more than 87 per cent supporting the reform.

“The public vote is unequivocally in favour of Texas! Tesla will move immediately to hold a shareholder vote to transfer the state of incorporation to Texas,” Musk announced.

The decision, issued in the Delaware Court of Chancery by Judge Kathaleen McCormick, meant that Musk can’t keep the 2018 compensation package. In her ruling, McCormick wrote that Tesla “bore the burden of proving that the compensation plan was fair, and they failed to meet their burden”.

The compensation plan approved by shareholders in 2018 consisted of 20.3 million stock option awards broken up into 12 tranches of 1.69 million shares.

Under the agreement, the options vested in 12 increments if Tesla hit specific milestones on market cap, revenue and adjusted earnings (excluding certain one-time charges such as stock compensation).

ALSO READ-Musk: India Not Having Permanent UNCS Seat Absurd

Previous Story

Startup Tax Benefits Extend to March 2025

Next Story

RBI’s Major Blow to Paytm

Latest from -Top News

Ukraine Opts Out of Saudi Talks

The US and Russian delegations are set to meet on Tuesday to discuss a possible solution to the Russia-Ukraine conflict…reports Asian Lite News Ukrainian President Volodymyr Zelensky said Monday that Kyiv would

Hezbollah to Israel: Leave Lebanon Fully

Israel had previously postponed its full withdrawal from Lebanon to February 18 after missing the initial deadline…reports Asian Lite News Hezbollah’s Naim Qassem has set a deadline, demanding Israel’s complete withdrawal from

Uniting Global Artistry In Dubai’s Heart

Art events are no more about showcasing art, it is about connecting and collaborating, and bringing artists and collectors n an engaging manner … A special report by Soniya Kirpalani, Photographs/ Video:

Netanyahu, Rubio Reaffirm Gaza Cooperation

Netanyahu emphasised US-Israel coordination regarding Iran, saying the two countries “work shoulder to shoulder” to counter Tehran’s nuclear program…reports Asian Lite News Israeli Prime Minister Benjamin Netanyahu, alongside US Secretary of State
Go toTop