Tesla: Elon Musk moves to shift Tesla legal home to Texas

Elon Musk says Tesla will move immediately to hold a shareholder vote on shifting the firm’s legal home from the US state of Delaware to Texas.

It comes after a judge in Delaware annulled Mr Musk’s $55.8bn (£44bn) Tesla pay package.

After the ruling, Mr Musk posted on social media: “Never incorporate your company in the state of Delaware.”

Many big firms, including Amazon, are registered in Delaware which is known for having light taxation.

This week, Judge Kathaleen McCormick found Tesla directors, who negotiated the pay package in 2018, were “perhaps starry eyed” due to Mr Musk’s “superstar appeal” and did not fully inform shareholders.

She said the deal was “unfathomable” and ruled it should be cancelled.

The lawsuit was filed by a shareholder who argued that it was an overpayment.

The electric car maker moved its corporate headquarters from California to Texas in 2021.

It came after Mr Musk had voiced criticism of California’s tax policies and regulation.