Elon Musk Says Tesla Will Hold Shareholder Vote On Incorporating In Texas After Twitter Poll Results Favor State

Tesla Inc TSLA CEO Elon Musk said on Thursday that the company will hold a shareholder vote on transferring the company’s state of incorporation to Texas from Delaware after a Twitter poll on the matter witnessed more voters leaning towards incorporating the company in the state where it is headquartered.

What Happened: Musk on Tuesday started a poll on X if the company should change its state of incorporation to Texas after a Delaware judge ruled his $56 billion pay package to be "an unfathomable sum” and revoked it.

The final results of the poll are in with a whopping 87.1% voting in favor of the company changing its state of incorporation to Texas.

“The public vote is unequivocally in favor of Texas!,” Musk wrote on X.

The EV maker is currently headquartered in Texas and incorporated in Delaware.

After the court ruling on Tuesday, however, Musk said, "Never incorporate your company in the state of Delaware." The CEO instead recommended either Nevada or Texas, saying it would help shareholders decide the company’s matters.

Why It Matters: The EV maker is currently headquartered in Texas and incorporated in Delaware.

After the court ruling on Tuesday, however, Musk said, "Never incorporate your company in the state of Delaware." The CEO instead recommended either Nevada or Texas, saying it would help shareholders decide the company's matters.

Many of Musk's portfolio of companies have operations in Texas. While Tesla has a gigafactory in Texas covering 2,500 acres along the Colorado River with over 10 million square feet of factory floor, SpaceX has its spaceport called Starbase in Boca Chica. Musk's tunneling company The Boring Company, meanwhile, is headquartered in Bastrop, Texas.

Photo by University of College on Shutterstock

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