(Photographer: Tolga Akmen/EPA/Bloomberg via Getty Images)
A Delaware judge ruled Tuesday that Tesla CEO Elon Musk's staggering compensation package of nearly $56 billion is null and void.
Now, Musk says he regrets incorporating his electric vehicle company in the state.
In the ruling, which can still be appealed, the judge found that Musk failed to meet his legal burden of proof to justify the compensation package, which is "the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude."
Musk and the Tesla board of directors, who worked out the package back in 2018, failed to legally prove that shareholders were "fully informed" because a prior statement about the situation "misleadingly omitted details about the process," per the filing.
"The process leading to the approval of Musk's compensation plan was deeply flawed," the judge wrote, noting that Musk had decades-long relationships with many of the key figures involved in deciding his compensation, including personal relationships that included friends Musk vacationed with and his former divorce lawyer.
"It is unsurprising that there was no meaningful negotiation over any of the terms of the plan," the judge added.
After the decision was made, Musk took to the platform he owns, X, to complain about the verdict. "Never incorporate your company in the state of Delaware," Musk wrote Tuesday night.
In another post, he urged his followers to incorporate in Nevada or Texas instead "if you prefer shareholders to decide matters."
Roughly 20 minutes later, he created a poll asking if Tesla should move its incorporation to Texas. At time of writing, over 880,000 votes have been cast, with roughly 87% voting "Yes."
Later that night, Musk shared screenshots of an opinion piece from The Wall Street Journal, which claims that Delaware is "trying hard to drive away corporations."
Musk is currently the second-richest person in the world with an estimated net worth of $183.4 billion, according to Forbes data, behind only the luxury fashion empire owner Bernard Arnault, who is worth $211.6 billion.