Austin, Texas – Tesla CEO Elon Musk announced on Wednesday that the company’s shareholders have voted to reinstate his substantial 2018 compensation deal, estimated to be valued at around $50 billion. This decision comes after the deal was previously invalidated by a Delaware judge earlier this year.
In a post on social media platform X, Musk shared that the shareholder resolutions regarding his remuneration and relocating the company to Texas had passed with strong support. The push to move Tesla’s state of incorporation from Delaware to Texas was initiated by Musk and gained momentum after a public vote conducted on his X account.
Musk expressed gratitude towards Tesla shareholders and supporters, acknowledging their role in the outcome of the vote. Following the announcement, Tesla’s shares saw a 0.46% increase in premarket trading.
Texas Governor Greg Abbott congratulated Musk on the successful shareholder vote, highlighting the benefits of Texas’ tax structure compared to Delaware. The legal challenges surrounding Musk’s pay package remain unresolved despite the favorable shareholder vote. Tesla shareholders, such as Donald Ball, have already filed lawsuits challenging the vote, accusing Musk of utilizing coercive tactics to influence the outcome.
The potential approval of Musk’s pay package could significantly increase his equity in Tesla from 13% to 22%, bringing him closer to his goal of controlling 25% of the voting power in the company. Musk has emphasized the importance of having substantial voting power to lead Tesla in the AI and robotics space.
With Musk’s current net worth estimated at $209.8 billion, he holds the position of the world’s richest person, according to Forbes. The ongoing fluctuations in the ranking between Musk and LVMH CEO Bernard Arnault reflect the dynamic nature of the billionaire landscape.
Overall, the reinstatement of Musk’s compensation deal and Tesla’s potential relocation to Texas mark significant developments in the billionaire entrepreneur’s financial trajectory. The legal challenges and shareholder disputes surrounding these decisions only add to the complexity of Musk’s role within the company and the broader business landscape.