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13/06/24
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Tesla Shares Higher After Musk Says Shareholders Approve $56B Pay
On Thursday, Tesla shares were up in premarket trading after CEO Elon Musk said that shareholders were backing his $56B pay package and a move by the EV giant to reincorporate from Delaware to Texas.
Shareholders of Tesla are voting on Musk’s pay package, the biggest in U.S. corporate history, and the reincorporation in Texas. The results will be unveiled at a meeting at Tesla’s Texas headquarters later in the day.
In a post on X, Musk said both resolutions were currently passing by wide margins.
Reuters cited a source familiar with the tally and reported a similar trend.
Analysts at Piper Sandler said they expected the stock to respond favorably to the news although the upside will not likely be as violent as the downside would have been if shareholders rejected the deal.
Earlier this year, a Delaware judge struck down Musk’s pay deal after a slew of complaints and lawsuits by shareholders. The vote will decide on its reinstatement, as well as Tesla’s reincorporation in Texas after Musk said conditions in Delaware were unfavorable.
A number of major Tesla shareholders have made their positions clear. Two California pension holders, Nordea Asset, and Norges Bank Investment Management have indicated they would reject the package, while others would vote in favor.
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