Elon Musk Wants to Reincorporate Tesla in Texas

Elon Musk Wants to Reincorporate , Tesla in Texas.<br />On Jan. 31, a Delaware judge ruled that Musk cannot receive a $56 billion pay package that Tesla granted to him in 2018, CNBC reports. .<br />The ruling was largely due to the fact that Musk was in control of the board of directors when he received the package.<br />Musk disagreed with the ruling, <br />taking to X to say, "Never incorporate <br />your company in the state of Delaware.".<br />The Tesla CEO later posed a question <br />to the public, asking if the company should change its state of incorporation.<br />It is not yet known when the <br />shareholder vote will take place.<br />Columbia Law School professor Eric Talley <br />told CNBC that Texas makes sense for Tesla.<br />In addition to its physical headquarters <br />being there, the state is more lenient about paying CEOs large sums of money.<br />If reincorporated in Texas, the board could potentially choose to award Musk a "gratitude" bonus, Talley said.<br />However, the move could be challenged by shareholders who view the change as "a choice made for Musk-selfish reasons," according to Talley