Elon Musk Responds to Public Opinion, Announces Plans to Shift Tesla’s Incorporation to Texas

19

Tesla CEO Elon Musk has confirmed his intention to move the company’s headquarters to Texas.

“The public vote is clearly in favor of Texas!” Musk stated on X, referring to a recent survey he conducted. More than a million users participated in the survey, with 87.1% voting “yes” to moving to Texas, where Tesla’s headquarters are already located.

Read More: Iconic Actress and Singer Chita Rivera, Winner of Tony Award, Passes Away at 91

In a statement of urgency, Musk said, “Tesla will proceed immediately to hold a shareholder vote to transfer its incorporation status to Texas.”

The decision follows a landmark development in Delaware, where a judge struck down Musk’s $55 billion Tesla compensation package. In his role as CEO of Tesla, Musk receives no salary; instead, his compensation is tied to achieving the company’s growth goals.

The compensation package outlines that Musk will receive shares equal to 1% of Tesla’s outstanding shares after meeting each of 12 tranches of growth targets. The recent ruling in Delaware raises concerns about Musk’s status as the world’s richest man, as a substantial portion of his wealth is tied to Tesla’s capital.

“Never incorporate your company in the state of Delaware,” Musk warned on X earlier this week.

Musk’s affection for Texas was evident, with reports in December suggesting plans to start his own university in Austin. In addition, Musk’s social media platform X announced in January that it would hire 100 employees for a new content moderation center in Austin.

So far, Tesla representatives have not responded to Business Insider’s questions sent outside normal business hours.