Tesla CEO Elon Musk posted on X on Thursday stating that Tesla will hold a shareholder vote to decide whether to transfer its registered address from Delaware to Texas.
On Tuesday, a judge in Delaware vetoed Musk's record breaking compensation plan of nearly $56 billion, citing that the compensation plan approved by Tesla's board of directors was unfair to the company's shareholders.
Musk received nearly $56 billion in compensation plans in 2018, which is the largest compensation plan in the history of a listed company. The salary plan includes 12 batches of stock options, all of which have been fully realized.
After the verdict was announced, Musk expressed dissatisfaction on social media platform X (formerly Twitter), writing, "Never register a company in Delaware."
Musk subsequently launched a public opinion poll on X, asking if Tesla should immediately change its registered address to Texas. More than 1.1 million people participated in the vote, with over 87% supporting this transformation.
Musk said, "The public vote clearly supports Texas! Tesla will take immediate action and hold a shareholder vote to transfer the company's registered address to Texas."
For Musk, the Delaware judge's ruling will significantly reduce his wealth. For most of the past few years, Musk has been the world's richest person, with a current net worth of $205 billion.
Texas is known for its low taxes and business friendliness. Due to dissatisfaction with California regulations and tax policies, Musk relocated Tesla headquarters from California to Texas in 2021.
Columbia University Law School professor Eric Talley pointed out that although relocating Tesla's registered address to Texas would benefit Musk's continued exorbitant salary, this move may be questioned by shareholders, who believe it was Musk's selfish choice.