Shareholders have okayed move: Musk
Tesla shareholders were voting in favor of a $56 billion pay package for Elon Musk and to move the electric vehicle maker's legal home to Texas, the CEO said on social media on Wednesday.
«Thanks for your support!» Musk said on his social media platform X late Wednesday. In his post, Musk included charts showing that the resolutions were set to pass, though shareholders are allowed to change their vote up to the start of the annual meeting.
Approval of the largest pay deal in U.S. corporate history could allay investor concerns about Musk's future at the company, while giving the electric carmaker ammunition in its fight to reverse a court decision to void the pay package.
A person familiar with the preliminary voting tally said a combination of big institutional investors and retail investor votes were responsible for the support.
Musk would still face a lengthy legal battle to convince the Delaware judge who said the Tesla board was «beholden» to him, while potentially fielding fresh lawsuits over the latest 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.
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