Tesla Inc (NASDAQ:TSLA) shareholders have approved a record-breaking $56 billion pay package for CEO Elon Musk and a plan to relocate the company's headquarters to Texas.
The pay package had faced a legal challenge earlier this year amid claims it was unfair to shareholders.
Musk, addressing shareholders at the annual meeting in Texas, expressed his gratitude, saying: "Hot damn, I love you guys."
However, the approval is non-binding, and legal experts indicate that it may not influence a Delaware court's prior decision to block the deal. The move to Texas may help Musk avoid legal censure.
While Tesla has not disclosed the voting margin, Musk hinted at the results on his social media platform, X, formerly known as Twitter. Following his announcement, Tesla's stock closed nearly 3% higher.
Both Tesla shareholder resolutions are currently passing by wide margins!
♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo
— Elon Musk (@elonmusk) June 13, 2024
The compensation plan grants Musk rights to approximately 300 million shares, equivalent to a 10% stake in the company, as a reward for meeting ambitious targets, such as reaching a $650 billion market valuation.