December 30, 2024

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Musk moves Tesla to Texas – angry over 'mammoth' tariff cancellation.

Musk moves Tesla to Texas – angry over 'mammoth' tariff cancellation.

the Elon Musk Tesla shareholders are holding a vote on moving the facility to Texas from Delaware, after a court threw out the electric car maker's $56 billion pay package, Tesla said Thursday.

Angered by the Delaware court's decision, Elon Musk convened a board of directors to discuss the main topic of transferring the company to Texas state registries.


Following an appeal by a small Tesla shareholder over Musk's compensation package, Judge Kathleen McCormick ruled on Tuesday that the compensation package was “unimaginably” large and unfair to shareholders.

The compensation package was the largest in the history of the United States and helped make him the richest man in the world in 2023. It is worth noting that Musk does not receive a salary from the electric car company he founded, but rather he is compensated according to the company’s performance.

“Never locate your company in Delaware,” Musk posted on social media X shortly after the decision.

The lawyers who represented the winning shareholders in Tesla against Musk may be in for a record fee, as they told the Financial Times: “Bernstein Litowitz Berger & Grossman, the law firm that led the representation of investors who objected to the pay plan, could ask a Delaware court to pay… They have up to one-third of the benefit granted by the ruling to shareholders.”

If the decision does not fall under any potential appeal, Tesla's board will have to come up with a new compensation package for Musk.

The lawsuit follows a lawsuit filed five years ago by company shareholder Richard Tornetta, who claimed the amount was excessive.

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