Elon Musk Wants to Reincorporate , Tesla in Texas.
On Jan.
31, a Delaware judge ruled that Musk cannot receive a $56 billion pay package that Tesla granted to him in 2018, CNBC reports.
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The ruling was largely due to the fact that Musk was in control of the board of directors when he received the package.
Musk disagreed with the ruling, taking to X to say, "Never incorporate your company in the state of Delaware.".
The Tesla CEO later posed a question to the public, asking if the company should change its state of incorporation.
It is not yet known when the shareholder vote will take place.
Columbia Law School professor Eric Talley told CNBC that Texas makes sense for Tesla.
In addition to its physical headquarters being there, the state is more lenient about paying CEOs large sums of money.
If reincorporated in Texas, the board could potentially choose to award Musk a "gratitude" bonus, Talley said.
However, the move could be challenged by shareholders who view the change as "a choice made for Musk-selfish reasons," according to Talley
