It’s a safe bet that Elon Musk won’t ever forget the name Kathaleen McCormick. The Chancellor of the Delaware Court of Chancery just handed him his second defeat, following an earlier mandate to honor his $44 billion buyout of Twitter in October 2022.
McCormick now rules that Musk’s record-breaking $55.8 billion pay package from 2018 is null and void, over a year after the trial’s end. The stock options he received must be renegotiated transparently to ensure fairness for shareholders.
“Never incorporate in Delaware,” Musk posted on Tuesday to his social media site, X (formerly Twitter), before adding he recommended Nevada or Texas “if you prefer shareholders to decide matters.”
He then put the issue to a user poll in which he asked whether Tesla should move its state of incorporation to Texas, in line with where its headquarters are situated.
More than 750,000 accounts cast their vote with 88% in support of the idea, at the time of writing.
If Musk follows through, it wouldn’t be the first time he has taken such a measure.