Wednesday July 17, 2024

Elon Musk says Tesla shareholders voting for his $56 billion payout

Tesla is due to make official announcement on result of vote at meeting

By Web Desk
June 13, 2024
Tesla CEO Elon Musk gestures during a gathering. — Reuters/File
Tesla CEO Elon Musk gestures during a gathering. — Reuters/File

Tesla CEO Elon Musk said that shareholder votes on a record-breaking payout to the multi-billionaire as well as a plan to move the firm's legal headquarters to Texas are "currently passing by wide margins".

Several proposals have been in voting by the Tesla shareholders, which also includes one that could confirm a pay deal for Musk, that was worth $56 billion (£43.8bn) when it was first agreed in 2018, reported BBC.

On the result of the vote at a meeting on Thursday, the company is due to make an official announcement.

Moreover, Musk thanked his supporters in a post on social media platform X, formerly known as Twitter.

Relieving the threat that Musk might leave the company, shares in the company started trading more than 6% higher, which as per analyst Dan Ives of Wedbush Securities signalled confidence from investors that the deal would go through.

"In a nutshell, if this proposal went south a lot of bad things and scenarios could have happened including Musk beginning a path to not being CEO of Tesla," he wrote in a note.

However, legal experts say it is not clear that the re-vote which is not binding will be accepted by a court that blocked the deal and allow the company to restore the pay package.