After a Delaware judge and the state's court ruling denied Elon Musk his massive $55.8 billion paycheck from Tesla, the renowned CEO and billionaire is now looking to bring the entirety of the company to Texas. In the recent possibility of this happening, the tech mogul went to X first and asked his followers about the rightful decision to make, with many favoring the move.
It is known that many Fortune 500 companies are registered in Delaware for its low corporate taxes and loose business legal framework.
Elon Musk Wants to Move Tesla to Texas from Delaware
(Photo : Michael M. Santiago/Getty Images)
After Delaware Court of Chancery Judge Kathaleen McCormick ruled against the $55.8 billion paycheck for Musk, with shareholders also voting against it, the famed CEO of Tesla is now looking to make a move to Texas. Days after the decision, Musk held a poll on X and asked his followers if the company should move its state of incorporation from Delaware to Texas.
The said poll already ended, and a total of 87.1 percent voted "Yes" to the move, with only 12.9 percent against it.
As per the executive's latest post, he claimed that the public voted unanimously in support of his plans, with Musk looking to hold a shareholder vote that will decide on the company's move.
For now, the world is still waiting on the company's shareholders' vote regarding this proposed Texas move.
For many years, Delaware has been home to renowned companies that want lower corporate taxes and a "business-friendly" legal framework, with over 68 percent of Fortune 500 companies registered there. However, Musk is not taking no for an answer to his $56 billion paycheck, with the Tesla board concluded to have misled shareholders regarding the inaccuracy of information about Musk's massive salary.
Elon Musk and the Lone Star State
Back in 2021, Elon Musk floated the idea of creating a Gigafactory in Texas and making the state the primary physical headquarters of his clean energy company, Tesla. This became a reality after a year, and this was also the time that Giga Texas finished its construction, with the company having a grand opening party to commemorate the event.
Not only that, Musk's private space agency, SpaceX, is also known for its massive headquarters in Boca Chica, the home of the Starbase, and where the Starship commences its development and tests.
Despite several Texan law run-ins with Tesla and Musk wanting a change for its legislation, this is still his favored state to conduct his businesses in, with two of his major companies based there.
Amidst the salty denial of Musk's billion-dollar pay, the CEO is now back to floating the idea for Tesla to fully move to Texas, transferring its state of incorporation to the Lone Star State from Delaware. Musk's X poll has spoken and it supports the billionaire for his plans to move, with Musk soon to hold a shareholder vote for this change to happen, and possibly, an all-Texas business for him.
