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A hot potato: If there's one thing we know about Elon Musk, it's that he holds a grudge. Following a ruling by a judge in Delaware, where Tesla is incorporated, that voided his $56 billion compensation package this week, the billionaire has announced that Tesla is moving its state of incorporation to Texas. The announcement comes just as hundreds of CEOs voted Musk America's most overrated Chief Executive Officer.
Delaware Judge Kathaleen St J McCormick this week agreed with Tesla shareholder Richard Tornetta's lawsuit that claimed Tesla breached its fiduciary duty by unjustly enriching its CEO to the tune of $56 billion.
Musk's response to the decision came in the form of X/Twitter posts advising people never to incorporate companies in Delaware, opting for Nevada or Texas if "you prefer shareholders to decide matters."
Musk then posted a poll asking if Tesla should change its state of incorporation to Texas, home of the company's physical headquarters. After 1.1 million people participated, the final outcome was 87.1% in favor of the move.
The public vote is unequivocally in favor of Texas!– Elon Musk (@elonmusk) February 1, 2024
Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas. https://t.co/ParwqQvS3d
Citing the poll's results, Musk later confirmed that Tesla would be immediately moving to hold a shareholder vote to transfer its state of incorporation to Texas.
Using polls to decide the outcome of important decisions isn't something new for Musk. He restored Donald Trump's account in 2022 based on one of these results. There was also the poll asking if he should step down as CEO of the platform, to which most people said yes – that was one of the times when he suggested a poll didn't go his way because of interference by bots.
Interesting https://t.co/NXeIQXa45c– Elon Musk (@elonmusk) February 1, 2024
Musk topped another poll recently, though he's unlikely to be happy about it. Fortune's survey of most admired companies includes a section in which hundreds of CEOs were asked to rank their peers in terms of who is most overrated and who doesn't get enough credit. Musk took the number one spot on the most-overrated CEO list for the second year in a row, gaining 399 votes. Disney boss Bob Iger, who Musk has a particular dislike of, came second with 302 votes.
In the most-underrated section, Microsoft boss Satya Nadella was number one with 274 votes. Nadella has topped this list for the last eight years.
Musk's ambitious promises of colonizing Mars and the launch of fully self-driving Teslas, which he previously said would arrive in 2016, have helped earn him the most-overrated title. The fact Tesla missed its earnings and revenue forecasts during the latest quarter and has seen its share price fall almost 25% over the last 12 months isn't helping his cause. Then there's X/Twitter, which was recently valued at 70% less than what Musk paid for it.