Tesla Inc. (NASDAQ:TSLA) has formally shifted its incorporation from Delaware to Texas, according to documents submitted to the Texas secretary of state's office.

The decision to move Tesla’s incorporation was triggered after a Delaware judge dismissed Musk’s approximately $56 billion compensation package, the largest ever awarded to a U.S. corporate executive. Despite the judge’s ruling, shareholders reapproved the pay plan on Thursday.

This is Musk’s third corporate exit from Delaware following the pay decision. He previously moved SpaceX‘s incorporation to Texas and Neuralink Corp.‘s to Nevada, according to Bloomberg. The process for Tesla was more complex due to its public trading status.

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Musk has strong ties in Texas, a state renowned for its low taxes and minimal regulatory interference. Tesla shifted its physical headquarters to Austin in 2021, following Musk’s criticism of Covid restrictions in California.

Tesla chair Robyn Denholm highlighted the company’s goal of global sustainability at the meeting.

“Tesla needs to develop the most revolutionary technologies, not just auto,” Denholm said. She noted that this includes artificial intelligence initiatives.

Denholm highlighted several achievements for Tesla in 2023, including the Model Y becoming the bestselling vehicle in the world, the beginning of Cybertruck deliveries, and the rollout of supervised Full Self-Driving (FSD).

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image generated using artificial intelligence via Midjourney.