This overwhelming support has led to the decision to hold a shareholder vote “immediately.”
Tesla’s Current Landscape
While Tesla’s physical headquarters is already based in Austin, Texas, the company is formally registered in Delaware. This is the state that has been previously known for its business-friendly environment.
Musk’s plan to shift the state of incorporation raises questions about the potential implications and challenges involved in the process.
Elon Musk founded Tesla in 2003 and transformed it into the world’s largest electric vehicle company. The relocation to Texas in 2021 marked a significant move for the company, and Musk’s recent decisions continue to shape Tesla’s trajectory.
Judge McCormick, who presided over the recent case, had previously handled a legal dispute between Musk and the company formerly known as Twitter. This historical context adds an interesting layer to the ongoing saga surrounding Musk and his corporate endeavors.
Financial Implications for Musk
If the court’s ruling on Musk’s pay package is upheld, he stands to lose stock options valued at $51.1 billion.
