Yeehaw! Musk Drives Tesla Incorporation To Texas After Shareholder Vote

Tesla Inc. TSLA has formally shifted its incorporation from Delaware to Texas, according to documents submitted to the Texas secretary of state's office.

What Happened: The relocation process, initiated by Tesla’s CEO Elon Musk in January, was completed late Thursday following a vote by Tesla shareholders, Bloomberg reports. This move aligns Tesla’s legal domicile with its physical headquarters in Austin, Texas.

The decision to move Tesla’s incorporation was triggered after a Delaware judge dismissed Musk’s approximately $56 billion compensation package, the largest ever awarded to a U.S. corporate executive. Despite the judge’s ruling, shareholders reapproved the pay plan on Thursday.

This is Musk’s third corporate exit from Delaware following the pay decision. He previously moved SpaceX‘s incorporation to Texas and Neuralink Corp.‘s to Nevada, according to Bloomberg. The process for Tesla was more complex due to its public trading status.

See Also: EXCLUSIVE: Benzinga Readers Who Own Tesla Shares Overwhelmingly Voted This Way On Elon Musk’s Compensation

Musk has strong ties in Texas, a state renowned for its low taxes and minimal regulatory interference. Tesla shifted its physical headquarters to Austin in 2021, following Musk’s criticism of Covid restrictions in California.

Why It Matters: During the annual shareholders meeting on Thursday, Musk thanked the shareholders for their support and stated that Tesla is ‘starting a new book.’

Tesla chair Robyn Denholm highlighted the company’s goal of global sustainability at the meeting.

“Tesla needs to develop the most revolutionary technologies, not just auto,” Denholm said. She noted that this includes artificial intelligence initiatives.

Denholm highlighted several achievements for Tesla in 2023, including the Model Y becoming the bestselling vehicle in the world, the beginning of Cybertruck deliveries, and the rollout of supervised Full Self-Driving (FSD).

Read Next: ‘Tesla Is Musk, Musk Is Tesla,’ Dan Ives Emphasizes Ahead Of Shareholder Vote

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image generated using artificial intelligence via Midjourney.