Elon Musk Sours On Delaware After Judge Strikes Down $56B Package, Asks X Followers If Tesla Should Change State Of Incorporation To Texas
Portfolio Pulse from Anan Ashraf
Elon Musk, CEO of Tesla Inc (NASDAQ:TSLA), initiated a poll on Twitter asking if Tesla should change its state of incorporation from Delaware to Texas after a Delaware judge struck down his $56 billion pay package. The judge ruled in favor of a shareholder lawsuit claiming the board breached fiduciary duties by awarding Musk the package in 2018. Musk criticized the ruling and suggested incorporating in Nevada or Texas instead. The poll showed 89.7% support for Texas incorporation. The decision can be appealed in the Delaware Supreme Court.
January 31, 2024 | 3:43 am
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Tesla's CEO Elon Musk is considering changing the state of incorporation to Texas, which could have legal and administrative implications for the company.
The news of a potential change in Tesla's state of incorporation may have a neutral short-term impact on the stock price. While the legal ruling against Musk's pay package could be seen negatively, the consideration to move to Texas, where Tesla is headquartered, may not significantly affect the company's operations or financials in the short term. However, it could have longer-term implications depending on the outcome of the potential move and any subsequent legal or administrative changes.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 80