Recently, after a judge in Delaware ruled that Musk's $55.8 billion compensation package at Tesla was invalid, Musk complained on X, suggesting that he might transfer Tesla's registered place of residence from Delaware to Texas. The billionaire joins the 89% of Americans who are dissatisfied with their pay. Inadvertently, this complaint of his became the most empathetic thing for him in many years.
Never register your company in Delaware," Musk wrote in a tweet on Tuesday, and launched a poll, "Should Tesla change its state of registration to Texas, where its physical headquarters are located?" As of Wednesday morning, about 87 percent of respondents had answered "yes."
See, even billionaires are involved in the battle for fair pay. Most people feel they aren't paid enough, and 60% of Americans live on their salaries, and Musk is no different. Every week, he has to figure out how to pay for his next rocket, pay for the next social network, or fund the next era of artificial intelligence. Musk is unhappy that he doesn't pay him more for his work, which makes him just a multi-billionaire and no longer the richest man in the world.
The reason why Musk's compensation package is being disputed in court is that in 2022 a Tesla shareholder challenged his compensation terms. Musk does not receive a salary from Tesla, but he owns a large stake in the company. The CEO said he would feel uncomfortable without controlling about 25% of the company's shares and not being able to transform Tesla into a leader in artificial intelligence and robotics.
More than 60% of Fortune 500 companies are registered in Delaware, including Tesla, because of the significant tax and legal benefits the state offers. Most companies can evade state income tax by registering in Delaware, which has a more efficient legal process that allows for quick resolution of corporate disputes. Texas, where Tesla is physically located, is less popular as a place of incorporation, but has many similar tax benefits. As of Wednesday, Elon Musk's net worth was estimated to be close to $200 billion.