Musk says Tesla shareholder vote for $56 billion pay package passing by wide margins – EVOL

By Hyunjoo Jin, Abinaya V and Greg Roumeliotis

(Reuters) -Tesla shareholders are voting to approve 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, adding that passage was by wide margins.

“Thanks for your support!!” Musk said in his post on X.

Overwhelming shareholder approval of the largest remuneration terms 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.

Tesla shares were up 6.6% in premarket trading on Thursday after rising 3.9% a day before the shareholder meet.

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.

The result will be announced at a meeting at Tesla’s headquarters in Texas at 4:30 pm (2130 GMT) on Thursday.

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