Tesla (NASDAQ:TSLA) shareholders have voted to approve a $56 billion pay package for Elon Musk and to move the electric vehicle (EV) maker's legal headquarters to Texas, the CEO announced on social media on Wednesday.
Musk noted that the approvals passed by wide margins.
"Thanks for your support!!,” he wrote on his social media X, formerly known as Twitter.
The overwhelming approval of this substantial remuneration package could ease investor concerns about Musk's future with Tesla and strengthen the company's position in contesting a court decision that voided the pay package.
“This removes a $20- $25 overhang on the stock in our opinion that has weighed on shares since the head-scratching Delaware ruling set this Twilight Zone soap opera on earlier this year,” Wedbush analysts said.
“Now with this comp package done we would expect the Board to look to get Musk to an incentive-driven 25% ownership of Tesla that should resolve this AI threat saga the last few months,” they added.
Tesla shares popped more than 6% in premarket trading Thursday.
Musk still faces a lengthy legal battle to convince the Delaware judge who stated the Tesla board was "beholden" to him and may also encounter new lawsuits over the recent vote.
"Even if the shareholders do approve the old package, it is not clear that the Delaware court will allow that vote to be effective," said Adam Badawi, a law professor at UC Berkeley.
The results will be announced at a meeting at Tesla's Texas headquarters at 4:30 pm on Thursday.