Musk says Tesla will hold shareholder vote ‘immediately’ to move company’s incorporation to Texas::Billionaire Elon Musk justified the decision on the results of an unscientific poll run on his X account a day earlier.
Musk says Tesla will hold shareholder vote ‘immediately’ to move company’s incorporation to Texas::Billionaire Elon Musk justified the decision on the results of an unscientific poll run on his X account a day earlier.
Did you not read the article before responding? Its right in the first sentence:
“Tesla CEO Elon Musk on Thursday said the electric vehicle maker will hold a shareholder vote to transfer the company’s state of incorporation to Texas, after publicly lashing out at Delaware—where the company is currently incorporated—over a court decision that voided the billionaire’s massive $50.9 billion pay package.”
The How’s and Why’s is because Tesla is incorporated in Delaware, a state famously favorable to businesses, and he lost a court ruling that is going to affect his wealth. There’s no changing that ruling, but moving would mean different but not better legal challenges going to Texas.
Further, he’s claiming he’s making this move because of a Twitter poll! Twitter has become extremely polarized since Musk’s purchase has become more of an echo chamber of “yes men” gravitating to Musk’s extreme positions. So he has a biased audience and putting it to a vote seemingly to try and add legitimacy to the decision. That is either deceitful because he knows they’re “yes men” or terrifyingly out-of-touch that he doesn’t know they’re “yes men” affirming his decisions because he’s asking for affirmation.
This is a massive failure either transparency or of self-awareness. Someone with Musk’s wealth and influence should do much much better than that.
Do you know how crooked you have to be to have a Delaware™ court rule against you?
Delaware™ is a wholly owned subsidiary of the DuPont corporation, all rights reserved.
Yeah, I alluded to that in my post but didn’t dive in. I think this is going to be worse for Musk and Tesla. There are all kinds of taxation and corporate liability protections in Delaware that don’t exist in Texas. There are possibly teams of lawyers salivating over this incorporation change going into place opening up new and previously unavailable avenues to attack Tesla under Texas law, or rather without Delaware protections.
edit:spelling
Hey, just a friendly heads up:
“Eluded” means escaped or evaded. “He eluded capture once again.”
The word you wanted was “alluded”, meaning to suggest or indirectly hint at without outright stating.
That’s all, citizen. English-Major-Man, away!
Thanks for that! I like the correction. Edited original post to correct it.
You’re using your powers for good!