From Fortune:

Elon Musk is threatening to move Tesla’s state of incorporation from Delaware to Texas after a judge voided a $55.8 billion compensation package. Delaware is a low-tax haven for businesses, saving companies billions in corporate income taxes and providing a neutral playing field for businesses. Musk’s compensation package was voided due to board conflicts of interest and misleading shareholders. Moving to Texas could make it easier to award Musk a large bonus, but shareholders would have to approve the move. It’s unclear if it’s in their best interest. Texas recently established its own system of business courts, but Delaware still holds an advantage due to its extensive case law.



Read more: Elon Musk hates Delaware now. Here’s why millions of businesses love it