Tesla Shareholders Approve Elon Musk’s $56B Pay Package, Relocation to Texas

Tesla Elon Musk
Source: Barron’s

Tesla shareholders have officially approved Elon Musk’s $56 billion pay package and relocation plan to Texas. The shareholders met at a meeting in Austin, TX on Thursday, putting a vote of confidence into the current Tesla CEO.

The shareholders also approved other proposals including the re-election of two board members: Musk’s brother Kimbal Musk and James Murdoch.

Speaking at the meeting, Elon Musk described himself as optimistic. “If I wasn’t optimistic this wouldn’t exist, this factory wouldn’t exist,” Musk said to a roaring crowd of approval. “But I do deliver in the end. That’s the important thing.” The voting tallies were not disclosed, but according to Musk, they were overwhelmingly positive.

In January, Musk threatened to build AI and robotics products outside Tesla. This would open a new tab if he failed to gain enough voting control, which eventually pushed the 2018 pay package to be approved.

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Despite Tesla shares being down since their 2021 peak, Musk has kept interest in the company among investors. Based on the approval, this interest is much to the gratification of the board and shareholders. The board had said that Musk deserves the package because he hit all the ambitious targets on market value, revenue, and profitability.

Before the move to Texas though, The Tesla CEO could still face a long legal fight to convince a Delaware judge who invalidated the pay package in January to approve it. The judge described the deal as “unfathomable.” He may also face new lawsuits on the package, which could be the largest in U.S. corporate history.