this post was submitted on 02 Feb 2024
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Musk says Tesla will hold shareholder vote ‘immediately’ to move company’s incorporation to Texas::Billionaire Elon Musk justified the decision on the results of an unscientific poll run on his X account a day earlier.

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[–] [email protected] 76 points 9 months ago (1 children)

This has nothing to do with physical locality.

It's because he lost a shareholder lawsuit over his exorbitant compensation package, and he's being a whiny salty baby about it.

To be clear, Tesla is currently incorporated in Delaware, which is already well known for being extremely hostile to shareholder lawsuits like this. He picked the most favourable ground possible and still lost. He's not going to get better treatment from Texas.

He's just throwing his toys out of the pram because he's mad, and forcing the entirety of Tesla to join in his tantrum.

[–] [email protected] 20 points 9 months ago (1 children)

Delaware is considered as a tax haven.

[–] [email protected] 2 points 9 months ago* (last edited 9 months ago) (1 children)

I think it’s because Delaware has really lax laws on incorporating and a special court just for corporate stuff so legal issues can get sorted quickly.

edit

Like in Delaware you can incorporate for like $500 a year and not even need to provide the names of the officers or ceo of the corporation.

[–] [email protected] 1 points 9 months ago (1 children)
[–] [email protected] 1 points 9 months ago

Can you explain what makes it a tax haven?