Tesla said Wednesday it will ask shareholders to reinstate CEO Elon Musk’s $56 billion pay package, which a Delaware judge voided earlier this year after ruling that the record-setting compensation deal was “deeply flawed.”

Tesla also said it would ask shareholders to approve moving the company’s incorporation from Delaware to Texas. Musk had suggested the move after his pay package was ruled illegal. The announcement Wednesday came days after the automaker said it would cut its workforce by 10%.

Tesla said the court decision created a “fundamental problem for the company.”

The two proposals are likely to be fiercely controversial. Tesla has hired a proxy solicitor, Innisfree M&A, and plans to spend an undetermined amount, in the millions, to help secure the votes for the two proposals, according to the filing.

Tesla has not hired Innisfree since 2018, when it first asked shareholders to vote on Musk’s pay package. Companies often only advertise the cost of proxy solicitations when major proposals or proxy fights are expected. (Innisfree was also suing Musk’s Twitter over unpaid bills.)

Musk’s pay package was invalidated after a shareholder won a lawsuit against the company earlier this year. Delaware Chancery Court Chancellor Kathaleen McCormick found that Musk, rather than Tesla’s board, controlled the company and that the board’s compensation committee, rather than negotiating with Musk over the terms of the deal, “worked alongside him, almost as an advisory body.”

The Tornetta decision, named after Tesla shareholder Richard Tornetta who brought the suit, prompted Musk to say, “Never incorporate your company in the state of Delaware.”

McCormick was also the presiding judge in the legal action compelling Musk to buy Twitter, which he renamed. Tesla, in its Wednesday filing, cast doubt on her decision. “The Company and the Board believe that the decision in Tornetta ignored material evidence presented at trial and that the Delaware Court made errors of fact and incorrect conclusions of law,” Tesla said in the proxy filing.

The company also noted that “dozens of institutional stockholders” have told Tesla that they disagree with the Tornetta decision.

Delaware has long been a preferred home for corporations — more than 60% of the Fortune 500 companies are incorporated there — because the state has a robust legal framework and court system dedicated to resolving corporate issues, like executive pay, but also broader contract negotiations.

Tesla’s new proposal cautions shareholders that the Delaware court found the company’s initial 2018 disclosures to be deficient, and urged them to read the full text of the decision.

In January, the same day the pay package was rejected, Musk asked his X followers if Tesla should reincorporate in Texas. Months later, Tesla’s board agreed and is now proposing the move to Texas and asking shareholders to approve the move.

Tesla connected the Delaware decision directly to its proposal, but it said that both Elon Musk and his brother Kimbal Musk, who also sits on Tesla’s board, recused themselves from deliberations.

The company said that Tesla’s “home and future are in Texas” and that the board considered every U.S. state before narrowing it down to a head-to-head comparison between Delaware and Texas, Musk’s public comments notwithstanding.

Tesla also defends the move as commonplace, saying that 35% of S&P 500 companies are not incorporated in Delaware. The company acknowledged Delaware’s court system as world class, but said “doing new things is part of Tesla’s DNA, and how it has become one of the most valuable companies in the world.”

CNBC’s Lora Kolodny and Dan Mangan contributed to this report.

In-N-Out isn’t your typical burger joint, and it insists expanding its footprint won’t change that.

For nearly eight decades, the West Coast restaurant chain has remained a private, family-owned company that has cultivated fiercely loyal customers and a quirky identity despite being located in just a handful of states. But recently it’s been on a growing spree that will soon extend as far east as Tennessee.

Since Lynsi Snyder took over as the California-based company’s president in 2010, its size has nearly doubled, from 230 stores in four states to 402 in eight. In-N-Out Burger is opening in Washington, its ninth state, with New Mexico and Tennessee to follow.

Snyder said she’s still cautious about expanding too far or too fast and remains focused on keeping prices lower than competitors’. Even before taking the reins, she said she “felt such an obligation to look out for our customer. When everyone else was taking these jumps, we weren’t.”

Lynsi Snyder, the president of In-N-Out Burger, with employees at a Redding, Calif., location in 2019.Mike Chapman / USA Today Network

That could be an advantage as the burger wars adapt to an economy still fitfully coming down from a historic run-up of inflation.

Some major fast-food franchises saw underwhelming sales late last year as many diners veered away from drive-thrus to seek better value in grocery aisles. In February, Wendy’s hastened to “clarify” its plan to roll out “dynamic pricing” after customers complained it would mean pricier burgers and fries during busier times.

At In-N-Out, a Double Double — two beef patties with two slices of cheese — sells for anywhere from $5.90 to $6.05 in California, the company said.

Unlike In-N-Out, bigger fast-food rivals are franchised, allowing individual store operators to set their own prices, which can often run higher for similarly sized sandwiches. When NBC News recently placed online pickup orders at the closest McDonald’s, Wendy’s and Burger King locations to the same central Los Angeles address, a Big Mac cost $6.59, a Dave’s Single $6.29, and a Whopper $6.49, respectively.

In-N-Out still uses many of the same wholesalers Snyder’s grandfather used in the 1940s and ’50s, she said. It’s one reason the company has expanded so deliberately; moving into a new region can require striking up new relationships with untested vendors, which risks compromising on quality, price or both.

The company isn’t bucking industry trends with its growth plans. Major quick-service restaurants are also expanding, with McDonald’s, the Chicago sandwich chain Portillo’s and others chasing sales growth by shifting their geographical footprints. But while some larger brands are targeting the Sun Belt, where the populations of several states and cities have swelled since the pandemic, Snyder said In-N-Out is keeping its center of gravity on the West Coast.

That could pose some business challenges, especially in California, where restaurant operators say a new minimum wage for fast-food workers makes it harder to keep menu items affordable. The requirements, which took effect this month, mean companies with at least 60 national locations must pay workers at least $20 an hour. Some have responded by slashing their workforces in the state and warning they’ll pass higher labor costs to diners.

In-N-Out, however, was already paying associates about $20 to $21 an hour. Since the mandated hike, the company said it has increased that range to $23 to $24.

“We want them to go the extra mile to take care of our customers, so we want to pay them well,” Snyder said. “I’m going to take care of them.”

In-N-Out Burger, founded in 1948, has been a fast-food mainstay in Los Angeles for decades.Robert Gauthier / Los Angeles Times via Getty Images

Still, In-N-Out Burger joined a restaurant industry coalition that opposed the California pay law. The company contributed over $12.8 million to Save Local Restaurants, a group that sought to overturn the fast-food minimum wage, according to disclosures the company filed with state authorities. That effort was mooted, though, after the restaurant industry brokered a deal with labor leaders last fall, clearing the way for the pay hike to take effect.

Snyder declined to comment on the campaign against the wage law. A spokesperson for the company said: “In-N-Out Burger takes pride in offering all associates competitive salaries and wages, bonuses for managers and consideration for promotion from within the organization for qualified associates.”

Snyder’s grandparents founded In-N-Out Burger in 1948 as a tiny stand with a pioneering drive-thru speaker system on what were then the rural outskirts of Los Angeles. The company expanded regionally in the decades that followed, but by the time Lynsi was 17, a series of family tragedies had left In-N-Out without a Snyder at the helm. She started at the company by working the register at a new location in Redding, California, and ascended through various departments — including meat and merchandising — before taking control a decade later.

“There’s a stigma that can come with being the owner’s kid,” Snyder said. “I think that wanting to be respected, doing it the right way and not having this special treatment is where my mind was.”

She credits that experience with helping her gain confidence to do things her way — like proudly displaying Bible verses on In-N-Out packaging, or passing up certain tech trends. She has said “no to mobile ordering,” for instance, “because that greatly impacts the customer service experience.”

“There’s a lot of things that could be cheaper, easier, but that’s not the system we go through,” Snyder explained.

She expects the company to stay private, adding that she’s turned down many would-be buyers. Franchising? Also not going to happen. Snyder said she wants the family legacy to continue, especially now that her eldest son has jumped into the business.

“Just seeing him in his uniform, it’s hard to not be a little bit emotional and wish that my dad or my uncle could see him,” she said.

And despite the eastward expansion plans, she said hungry New Yorkers shouldn’t hold out for an In-N-Out in Times Square.

Asked whether the East Coast is on the table, Snyder said, “As long as I’m around, I’m probably saying never.”

Companies often see their stock price jump after announcing job cuts, as Wall Street rallies around the prospects for improved efficiency and profits.

But that’s not how investors treated the latest news out of Tesla. Shares of the electric vehicle maker tumbled almost 6%, falling to their lowest since May of last year, after CEO Elon Musk told employees the company is eliminating more than 10% of its global workforce.

“There is nothing I hate more, but it must be done,” Musk wrote in a memo about the layoffs.

Tesla shares have been spiraling since the calendar turned, tumbling 29% in the first quarter, the worst period since late 2022 and the third-steepest drop since the company’s initial public offering in 2010. The stock is 60% below its peak reached in November 2021.

Previous layoffs haven’t drawn such market pessimism. In 2018, when Tesla cut 9% of headcount, shares rose more than 3%. In 2022, the stock plunged 9% on initial reports around layoffs but recovered after Musk made clarifying comments days later.

The Tesla of today finds itself in a different kind of predicament.

Earlier this month, the automaker reported a drop in vehicle deliveries in the first quarter, the first annual decline since 2020 when the Covid pandemic disrupted production. In China, Tesla has faced an onslaught of competition from domestic EV makers, including BYD and the phone maker Xiaomi.

Prior to the layoffs, Tesla had been cutting prices and providing other buyer incentives, leading to likely margin erosion. Last week, the company said it’s slashing the subscription price of its premium driver assistance system, marketed as Full Self-Driving (FSD), by half for customers in the U.S. FSD doesn’t make vehicles autonomous and requires an attentive driver at all times.

According to the most recent available data from Kelley Blue Book, EV prices across the board were lower by 9.7% year over year in March, thanks to “strong incentive packages.” Tesla’s prices hit bottom in January, although their prices were edging higher in March.

Monday’s sell-off wasn’t just about layoffs, as Tesla executives Drew Baglino and Rohan Patel announced they’re leaving the company. Baglino had worked with Tesla since its early years, starting as a firmware and electrical engineer in 2006. Patel joined Tesla in 2016 after working as a senior advisor to former President Barack Obama on climate issues and other matters.

Musk said in the layoffs memo that “it is extremely important to look at every aspect of the company for cost reductions and increased productivity.” However, analysts and investors see a demand problem,

According to FactSet, 18 analysts have lowered their price targets on Tesla shares this month, while none have gotten more bullish.

“Just when you think the news couldn’t get any worse for Tesla, we have EV demand questions that have been popping up over the last few quarters,” Doug Clinton, managing partner at Deepwater Asset Management, said on CNBC’s “Squawk Box” Monday. “We have questions now about whether they’re going to build the low-cost Model 2, price cuts on FSD.”

Tesla began to acknowledge earlier this year that 2024 growth might be “notably lower” compared to the prior year. The company has said it’s between two waves of EV growth but has refrained from issuing guidance for 2024.

Beyond increased competition and the dynamics of the EV industry, there’s also the unpredictability that comes with Musk.

The billionaire has faced scrutiny from multiple regulatory agencies over his dealings at X, formerly Twitter, and shareholders have expressed concerns about whether he’s devoting enough attention to Tesla. Musk serves as CEO of SpaceX, owns X, started artificial intelligence venture xAI and runs brain computer interface company Neuralink and tunneling venture The Boring Co.

Meanwhile, he has repeatedly disparaged undocumented immigrants, ranted against corporate diversity initiatives and reposted false conspiracy theories.

Musk has previously said that he hadn’t missed any “important” meetings at Tesla, and that he wasn’t “totally missing in action.”

Tesla didn’t respond to CNBC’s request for comment.

The Federal Aviation Administration lifted a ground stop for all Alaska Airlines flights Wednesday after grounding the planes earlier as a result of a computer problem at the carrier.

The Seattle-based airline said in a statement that an issue arose “while performing an upgrade to the system that calculates our weight and balance.”

The FAA initially approved a ground stop for all Alaska and Horizon flights starting at approximately 10:50 a.m. ET.

It was lifted just before 11:45 a.m. ET.

It wasn’t immediately clear how many flights were affected. An Alaska spokesperson did not immediately respond to a request for comment.