Tesla (NASDAQ:) shareholders voted to approve Elon Musk’s $56 billion payout package and move the electric vehicle (EV) maker’s legal headquarters to Texas, the CEO announced on social media Wednesday.
Musk noted that the approvals were overwhelming.
“Thank you for your support!!,” he wrote on his social network X, formerly known as Twitter.
Supermajority approval of this significant pay package could ease investor concerns about Musk’s future with Tesla and strengthen the company’s position in challenging a court ruling that invalidated the pay package.
“In our view, this will eliminate the $20-$25 stock overhang that has weighed on the stock since a Delaware ruling put that Twilight Zone soap opera in its tracks earlier this year,” Wedbush analysts said.
“Now that this compensation package is in place, we expect the Board to seek an incentive 25 percent ownership of Tesla from Musk, which should resolve this AI threat saga that has played out over the past few months,” they added.
Tesla shares rose more than 5% in premarket trading Thursday.
Musk still faces a lengthy legal battle to convince a Delaware judge who said Tesla’s board is “obligated” to him, and could also face more lawsuits over the recent vote.
“Even if shareholders approve the old package, it is unclear whether the Delaware court would rule the vote effective,” said Adam Badawi, a law professor at the University of California, Berkeley.
The results will be announced at a meeting at Tesla headquarters in Texas at 4:30 pm on Thursday.