Texas Adds Over 100,000 New Jobs, Elon Musk Proposes Relocating Tesla to State

February 16, 2024 in News by RBN Staff


Source: TheTexan.news


Elon Musk is now considering moving Tesla’s incorporation to Texas following a Delaware court decision.


A new report from the Federal Reserve Bank of Dallas called Texas an economic “juggernaut,” as the state netted nearly 103,000 jobs between 2010 and 2019.

Texas led all the other states in job gains from business relocations, with Dallas and Houston being the main landing metropolitan areas where businesses chose to relocate. The report notes that 90 percent of the businesses moving in and out of the state were small businesses, and those single-establishment entities accounted for about 50 percent of the net job migration to Texas.

When interpreting the impact of the new business arrivals, the report adds that “the number of businesses moving to or from Texas is actually a small share of overall establishments in the state,” with relocated businesses constituting 0.12 percent of the almost 2.3 million established businesses in the state.

Texas has attempted to show itself as an economic leader both domestically and globally.

Gov. Greg Abbott’s recent overseas visit to India was meant to promote Texas’ economy on the global stage and “encourage continued trade, job creation and capital investment by Indian companies in Texas; and strengthen the ongoing partnership between India and Texas.”

“Texas remains the most popular destination for Indian foreign direct investment and jobs created in the entire United States,” Abbott said in a statement. “I am confident this enduring bond and strong collaboration will continue for years to come after this very productive economic development mission.”

Tech magnate Elon Musk has found a home for many of his business ventures in the Lone Star state since moving the majority of his operations and manufacturing to Texas in 2021. Musk has even continued to expand his Tesla “Gigafactory” and embark on ambitious new projects, including creating what he has called the largest rooftop solar installation in the world.

Tesla is part of an elite group of stocks called The Magnificent Seven — which includes other tech companies like Apple, Microsoft, and Alphabet, the parent of Google — whose outsized impact on the stock market accounts for just over 39 percent of the Nasdaq 100 performance.

However, Musk has been miffed as of late with how his role in Tesla has been treated by shareholders.

A Delaware judge recently ruled that a $55.8 billion Tesla compensation package for Musk, which would have required Tesla to meet certain performance requirements over the next decade for him to receive the full amount, must be rescinded. The case against the package arose from a shareholder lawsuit that argued Tesla’s board of directors breached its fiduciary duties to investors and did not properly disclose vital information, in addition to the claim the compensation failed to motivate Musk to prioritize Tesla’s growth.

“Swept up by the rhetoric of ‘all upside,’ or perhaps starry eyed by Musk’s superstar appeal, the board never asked the $55.8 billion question: Was the plan even necessary for Tesla to retain Musk and achieve its goals?” Delaware Court of Chancery Judge Kathaleen McCormick wrote in the ruling.

“The incredible size of the biggest compensation plan ever — an unfathomable sum — seems to have been calibrated to help Musk achieve what he believed would make ‘a good future for humanity,’” the judge added.

Not one to hold back on publicly voicing his thoughts, Musk took to social media following the ruling to say, “Never incorporate your company in the state of Delaware.”

“I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters,” he added, and ran a poll that accumulated more than a million votes with over 87 percent in favor of Tesla incorporating in Texas.

“The public vote is unequivocally in favor of Texas!” Musk stated. “Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas.”