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Tesla (NASDAQ:TSLA) CEO Elon Musk said the electric vehicle maker will soon hold a shareholder vote to transfer its state of incorporation to Texas, which follows a Delaware judge voiding the billionaire’s $55B pay package.
The statement was made after Musk held a public poll on the matter on social media platform X (formerly Twitter). “The public vote is unequivocally in favor of Texas!” he tweeted. “Tesla (TSLA) will move immediately to hold a shareholder vote to transfer state of incorporation to Texas.” Note that Tesla’s (TSLA) headquarters are in Austin, Texas.
The announcement came a day after Musk’s pay package of over $55B – the biggest compensation plan in corporate history – was voided by a judge.
“Never incorporate your company in Delaware,” Musk said after the ruling. “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters.”
California lawsuit
In other news, Tesla (TSLA) has been sued by district attorneys of 25 California counties over its mishandling of hazardous waste materials.
The complaint, as uploaded by TechCrunch, claimed that Tesla (TSLA) “intentionally disposed of, and intentionally caused the disposal of hazardous waste” at locations that were unauthorized and were not adequately equipped to handle the waste.
It also allegedly failed to properly label and store containers of hazardous waste, and failed to comply with the state’s employee training related to hazardous waste handling.
In a 10-K filing, Tesla (TSLA) disclosed that the district attorneys had investigated its waste segregation practices, and it’d implemented remedial measures. “It is not currently expected to have a material adverse impact on our business.”
“The state’s accusation that Tesla (TSLA) continued to violate environmental rules for years ‘intentionally’ and ‘negligently’ suggests that its liability could go beyond civil penalties,” said ESG specialist Eric Roesch, who runs ESGHound.