Musk vowed to move Tesla to Texas after judge blocked his $56 billion pay package

Electric vehicle giant Elon Musk is already headquartered in the Lone Star State. Photo: SUZANNA CORDEIRO/AFP via Getty Images

Elon Musk has vowed to hold a shareholder vote on moving Tesla's registration from Delaware to Texas after his $56bn (£44bn) pay package in 2018 was vacated by a state judge.

The billionaire said the electric car company will «immediately» vote on moving its registration to Texas after conducting a public poll on its social media platform X, formerly known as Twitter.

His statement came after a judge in Delaware, where the company is currently registered, ruled that he is not entitled to the landmark compensation package awarded by Tesla's board of directors.

He asked on X: «Should Tesla change?» Its state of registration is Texas, where is its headquarters?

The result showed that 87.1% of voters believe Tesla should change its state.

Public vote clearly favors Texas!

Tesla will immediately propose a shareholder vote on the issue of transferring its state of incorporation to Texas. https://t.co/ParwqQvS3d

— Elon Musk (@elonmusk) February 1, 2024

Mr Musk, who has previously polled people on X before making decisions, posted a message on social media expressing his dissatisfaction with Tuesday's verdict.

“Never register your company in Delaware » he wrote in one post.

He later added: «I recommend registering your company in Nevada or Texas if you prefer to let shareholders decide matters.»

Mr Musk risks losing his position as the world's richest man to Amazon's Jeff Bezos as a result of a Delaware court ruling that effectively stripped him of nearly a quarter of his wealth after he called the compensation deal «incomprehensible».

If the decision is upheld, Mr Musk will be overtaken as the world's richest person by both Bernard Arnault, owner of French luxury giant LVMH, and Mr Bezos.

Mr Musk is currently being assessed nearly $205 billion, although that includes a disputed $56 billion stake that was agreed to in 2018.

The decision comes five years after shareholders filed a lawsuit blaming Musk and Tesla directors in breach of duty and alleging that the salary package was the result of fictitious negotiations with directors who were not independent of him.

The defense argued that the salary plan was fairly agreed by a remuneration committee whose members were independent and had high success rates. .

In 2021, Tesla's CEO moved the electric car maker's headquarters from California to Austin, Texas.