Judge rules on Elon Musk's controversial move to relocate Tesla's legal base: 'An unfathomable sum'

A Delaware judge ruled that Tesla's move to Texas was legal after reviewing corporate law and precedent, according to Bloomberg Law.

The judge, Chancellor Kathaleen St. Jude McCormick, rejected a bid to invalidate Tesla's move, noting that shareholders didn't meet the necessary proportion of investor votes under charter provisions. The rules require two-thirds support, and Tesla stockholders only reached 63%. McCormick cited the results of a similar bid to halt Trade Desk's move to Nevada, which was resolved in 2024.

"Thus, if I agree with and adopt that reasoning, summary judgment in the defendants' favor is appropriate," McCormick wrote in her ruling.

McCormick previously blocked Tesla CEO Elon Musk's $56 billion pay package "on the grounds that Tesla's board was too beholden to him," according to Bloomberg. She called it "an unfathomable sum," per The Guardian.

Following that ruling, McCormick became the subject of harsh scrutiny and online attacks from Musk.

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"Absolute corruption," Musk wrote on X, previously known as Twitter. McCormick also ruled against Musk's attempt to withdraw from purchasing the social media platform for $44 billion, per Bloomberg. Musk then urged other companies to leave Delaware, which is the legal home to over 66% of Fortune 500 companies.

According to The Guardian, the move to Texas would bring Musk's businesses closer together. Both SpaceX and the Boring Company, two other Musk companies, operate in the Lone Star State. In 2021, Tesla moved its corporate headquarters to Austin. Texas, which has some of the lowest tax burdens in the country, makes many of Tesla's dealings more profitable for the company.

Its gigafactory has ramped up production of battery cells for use in electric vehicles and in 2024 boasted the largest rooftop solar installation in the world.

There's no timeline for the move. Perhaps it will help Tesla achieve its 2025 goal of making EVs more affordable as well as push more drivers to switch to EVs and curb planet-overheating pollution associated with climate disasters.

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Elon is the man 🥰