After canceling his compensation plan, Elon Musk wants to transfer Tesla to Texas (AFP/Archives/Patrick T. FALLON)
After the cancellation of his enormous compensation plan by the courts of the State of Delaware, Elon Musk, the boss of Tesla, will ask for a vote of his shareholders to transfer the registration of the company to the State of Delaware to that of Texas.
“The public vote is unequivocally in favor of Texas! Tesla will immediately conduct a shareholder vote to transfer the state of incorporation to Texas”, which designates the place of registration of the company, the billionaire posted on his social network X (formerly Twitter), in a message published during the night from Wednesday to Thursday.
The State of Delaware is favored by many companies for registration, because the registration formalities are simplified there. It also remains possible for companies to establish their headquarters in another state, as is the case for Tesla, based in Texas since the end of 2021.
In a previous message on Wednesday, the richest man in the world asked his subscribers on X to vote on this transfer.
On Tuesday, the judge in a court in the state of Delaware, in the eastern United States, ruled in favor of a shareholder of the automobile manufacturer Tesla who requested the cancellation of a compensation plan granted in 2018 to boss Elon Musk.
In detail, this plan provided for giving Elon Musk Tesla shares based on the achievement of several objectives over ten years. It was estimated at $56 billion when it was adopted.
The judge considered that the shareholders had received “erroneous” and “misleading” information about the board of directors and the remuneration committee – several members of which had been close to the billionaire for 15 to 20 years – ahead of the general meeting during which this plan was approved.
Billionaire Elon Musk in Krakow, Poland, January 22, 2024 (AFP/Archives/Sergei GAPON)
According to the complainant, the South African entrepreneur dictated his terms to directors who, given their relationships with him or their personal interests, were not sufficiently independent to oppose them.
In response, the billionaire posted on the social network X: “Never set up your company’s headquarters in the state of Delaware.”
In addition to Tesla’s headquarters, the state of Texas is also home to one of the automaker’s mega-factories.
On the New York Stock Exchange on Thursday, Tesla shares lost 1% at mid-session, to $185, after having lost more than 2.2% the day before.
© 2024 AFP
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