"Shareholder Vote Held for Texas Relocation"
Elon Musk, CEO of Tesla, who faces having to pay back a performance bonus worth a staggering $56 billion (approximately 74.6 trillion KRW) following a Delaware court ruling, announced that he will move the company's legal domicile from Delaware to Texas through a shareholder vote.
On the 31st of last month (local time), Musk asked his followers on his social media platform X (formerly Twitter) whether Tesla should relocate its legal domicile, and 87% of the 1.1 million participants voted "yes."
Musk stated, "The public vote overwhelmingly favored moving to Texas," and added, "I will immediately hold a shareholder vote to relocate to Texas."
This follows the Delaware court's ruling on the 30th of last month that the $56 billion compensation package approved by Tesla's board in 2018 for Musk is invalid. A small shareholder holding nine Tesla shares filed a lawsuit in October 2022, claiming Tesla failed to provide important information. As a result of the Delaware court's ruling, Musk is now in a position where he must return the $56 billion worth of stock options he received based on Tesla's performance.
Experts have responded coolly to Musk's plan to relocate the company.
Dan Costsworth, an investment analyst at the online investment platform AJ Bell, pointed out, "Musk's plan to relocate the company is typical entrepreneurial behavior?always looking for alternatives if he doesn't get what he wants." Eric Talley, a professor at Columbia Law School, said, "If Tesla relocates, the board could pay the compensation package without complying with Delaware court standards," but also noted, "Shareholders may object, viewing this as a choice made for Musk's selfish reasons."
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