Tesla shareholders approved Elon Musk’s $56 billion remuneration proposal, a vote of confidence in his leadership and an incentive to focus on the electric vehicle company.
Musk counted the preliminary voting results accurately, according to a source. A meeting at Tesla’s Texas headquarters on Thursday at 4:30 p.m. EDT (2030 GMT) will decide.
“Thanks for your support!” Musk stated.
Shareholder approval would confirm Musk’s term and show investors’ reluctance to risk the company’s future.
Musk vowed in January to build AI and robotics technologies outside Tesla if he did not acquire enough voting authority, which would require 2018 pay package approval.
The company has abandoned inexpensive mass-market electric vehicles to focus on robotaxis, disappointing investors who feel the autonomous technology will be tough to perfect.
Tesla’s share price has plummeted over 60% since its 2021 peak as EV shipments slow and Musk’s focus shifts between Tesla and other firms. Tesla stock rose 3.8% Thursday afternoon.
“This vindicates Musk and allays some investor concerns about his waning interest in Tesla,” said Leverage Shares senior research analyst Sandeep Rao, who owns Tesla stock.
Board chair Robyn Denholm claimed in a regulatory filing earlier this month that continuing the pay package was essential for “retaining Elon’s attention and motivating him.”
The board said Musk deserved the package for meeting his ambitious market value, sales, and profitability goals.
Tesla has been campaigning for Musk’s pay deal, especially among retail investors, who hold a disproportionate percentage of the firm but rarely vote. Support came from large institutional and retail investor ballots, according to a source.
Musk is crucial to Tesla’s growth, according to Platform X remarks. Tesla sponsored social media ads, and Musk promised to offer voting shareholders a visit to the Texas factory.
Tesla shareholders also chose to re-elect Musk’s brother, Kimbal Musk and Rupert Murdoch’s son, James Murdoch.
