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submitted 11 months ago by L4s@lemmy.world to c/technology@lemmy.world

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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[-] Voroxpete@sh.itjust.works 76 points 11 months ago

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.

[-] topinambour_rex@lemmy.world 20 points 11 months ago

Delaware is considered as a tax haven.

[-] M500@lemmy.ml 2 points 10 months ago* (last edited 10 months ago)

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.

[-] topinambour_rex@lemmy.world 1 points 10 months ago
[-] M500@lemmy.ml 1 points 10 months ago

Can you explain what makes it a tax haven?

this post was submitted on 02 Feb 2024
124 points (91.3% liked)

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