Musk seeks Tesla shareholder vote on moving incorporation to Texas

February 02, 2024

"Never incorporate your company in the state of Delaware," Musk posted on social media X shortly after the ruling. But getting shareholders on board could be a hurdle for Musk, should he go through with the vote. It would take at least 40 to 60 days to organize a shareholder vote, although the U.S. Securities and Exchange Commission could slow the process by requiring additional disclosures, she said. Its corporate law places greater restraints on management and is more protective of investors than states like Nevada, making it cheaper for Delaware companies to raise capital. Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas," Musk said on X.