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On Thursday, Tesla shareholders will cast their votes to approve CEO Elon Musk's $56 billion compensation package and to move the EV maker's legal headquarters to Texas. Musk expressed his gratitude in a post on X.

On Thursday, Tesla will announce the result of the shareholders vote to approve CEO Elon Musk's $56 billion compensation package and to move the EV maker's legal headquarters to Texas. Musk expressed his gratitude in a post on X on Wednesday.

Tesla shareholders are set to vote on whether to approve CEO Elon Musk's $56B compensation package and move the electric vehicle (EV) maker's legal headquarters to Texas. Musk suggested the vote would pass in a post to his social media platform X.

Reuters

Musk stated that shareholder approval of the largest remuneration terms in US corporate history was by a large margin, providing the EV maker with strong support to contest a court decision overturning the compensation package.

Musk cited a chart that showed overwhelming shareholder approval of what would be the largest remuneration deal in US corporate history, with a source close to the matter confirming the accuracy of the preliminary vote count.

New York Post

The victory is significant for Musk and the board, who risked their credibility to win shareholder approval despite opposition from major investors Glass Lewis and Institutional Shareholder Services.

The victory is significant for Musk and the board, who risked their credibility to win shareholder approval despite opposition from major investors Glass Lewis and Institutional Shareholder Services (ISS).

The victory is significant for Musk and the Tesla board, who risked their credibility to win shareholder approval despite opposition from major investors Glass Lewis and Institutional Shareholder Services (ISS).

The Economic Times

According to an internal agreement, the remuneration package will include stock options based on up to 12% of Tesla's outstanding shares in 2018. To be eligible to collect, Musk was required to achieve predetermined revenue or profit milestones to boost the stock market value to $650B.

According to an internal agreement, for Musk to receive the stock options of up to 12% of Tesla's outstanding shares in 2018, the CEO was required to achieve predetermined revenue or profit milestones to boost the stock market value to $650B.

When the targets were set in 2018, few believed they could be met. Tesla's stock then rose to $1.2T in 2021. The stock price has since dropped to $545B, but it stayed above $650B long enough for Musk to qualify for the option.

When the targets were set in 2018, few believed they could be met. Tesla's stock then rose to $1.2T in 2021. The stock price has since dropped to $545B, but it stayed above $650B long enough for Musk to achieve his end of the bargain.

In March 2018, most shareholders supported Musk's compensation plan. However, in January 2024, a Delaware judge overturned the plan. Large shareholders like criticized Musk's compensation as "excessive," and  warned of stock dilution, reducing the stock's value.

In March 2018, most shareholders supported Musk's compensation plan. However, in January 2024, a Delaware judge overturned the plan, with ISS calling the compensation "excessive" and Glass Lewis warning of stock dilution.

Reuters #

New York Post #

CBS #1622

Elon Musk's $56 billion compensation from Tesla is the largest remuneration in US corporate history. Some may consider it excessive, but it's beneficial for the company. The deal ensures that Elon Musk will continue to create value for the stockholders. Without Musk, there would be no Tesla.

CNN #

Elon Musk says Tesla shareholders have re-approved his pay package worth billions that a judge struck down

Disclosing vote counts before the completion of the voting process, as Elon Musk did on Wednesday, may potentially result in legal problems for Tesla if the information turns out to be wrong. The stock has risen since Musk's post on X; This could persuade people to vote your way and make those who are against you back down. Anyone who bought stock based on that information could file a securities lawsuit against Musk and Tesla.

Associated Press

Associated Press #

Shareholders are charting Tesla’s future as voting on CEO Elon Musk’s pay package comes to a head

There is a 48% chance Elon Musk will be the richest person in the world on December 31, 2025, according to the Metaculus prediction community.

Metaculus

Metaculus #

Elon Musk World's Richest Person 2025

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Musk says Tesla shareholders voting yes for his $56 bln pay package

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While Tesla's stock price has certainly dropped since the deal was first proposed, the agreed-upon terms were previously met and the board, as it was in 2018, seems set on fulfilling its promise. This vote isn't just about money, as Musk requires official control over the company if his innovative ideas are to remain the backbone of Tesla.

wsj.com

The Vote on Elon Musks 46 Billion Pay Package Is Coming Down to the Wire

Tesla has gone from a world-leading EV maker in hot pursuit of giving everybody affordable and effective green energy cars, to one advertising unnecessary cyber trucks and spending their time debating pay packages. Tesla's success should be based on manufacturing and sales, not casino-style money transfers to satisfy shareholders.

There is a 32% chance that Tesla will officially unveil a new passenger vehicle, possibly called the Model 2, priced under $25K by 2026, according to the Metaculus prediction community.

Tesla Model 2

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Musk says Tesla shareholders voting yes for his $56 bln pay package

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