In a late Wednesday announcement, Tesla (NASDAQ:TSLA) CEO Elon Musk revealed plans to conduct a shareholder vote to decide whether to shift its state of incorporation to Texas.
Musk conducted an informal poll on X (formerly Twitter), where over 80% of respondents favored the move. Following this, Musk expressed the intention to immediately pursue a shareholder vote for the incorporation transfer.
The announcement follows a decision by a Judge in Delaware to invalidate the CEO’s $56 billion pay package. "Never incorporate your company in the state of Delaware," Musk posted on X shortly after the ruling.
One of Tesla's crucial gigafactories is situated in Texas, and the electric automaker has ambitious plans for an expansion exceeding $750 million. Additionally, Tesla is constructing a lithium refinery in the state with the goal of supplying enough lithium for approximately 1 million electric vehicles by 2025.
Beyond Tesla, Elon Musk's other ventures, SpaceX and The Boring Company, also have operational bases in Texas. Musk is also the owner of social media platform X.
Shares of TSLA are up 1.15% in pre-market trading Thursday morning.