Big news from Tesla! CEO Elon Musk is shaking things up after a legal battle. He's moving Tesla's incorporation from Delaware to Texas. Why? A Delaware judge just tossed out his massive $56 billion pay package.
Tuesday was dramatic. Delaware judge Kathaleen McCormick sided with Tesla investors. They called Musk's 2018 pay deal too extravagant. McCormick agreed, saying it was "unfathomable" and unfair.
Musk's response? A fiery tweet: "Never incorporate your company in the state of Delaware."
He didn't stop there. Musk took to X (formerly Twitter) for a public vote. "Should Tesla become Texan?" he asked. Over 1.1 million voted, with a whopping 87.1% saying "Yes!"
"The people have spoken," Musk declared. "Texas, here we come!" Tesla's already got roots there. Its HQ is in Austin, and a mega-factory is expanding.
Musk's been eyeing Texas for a while. He moved Tesla's HQ there in 2021. California's rules and taxes? Not his cup of tea. Plus, he had a COVID-19 clash with California health officials.
Texas isn't just about Tesla. Musk's got big plans for a lithium refinery. It's a game-changer, set to outdo all of North America in lithium refining.
Musk's other ventures, SpaceX and The Boring Company, are also Texas-based.
Here's a twist: Delaware is a corporate magnet. Over 65% of Fortune 500 companies are there, thanks to friendly laws and taxes. But Musk? He's had his share of Delaware drama.
Remember his Twitter saga? Judge McCormick was in the middle of that too. She pushed Musk to seal his $44 billion Twitter deal, now known as X.
Musk's advice now? "Go for Nevada or Texas if you want shareholders in charge."
Meanwhile, Tesla shares are up 2% pre-market. Musk's making moves, and the market's noticing.