Elon Musk's $56 billion pay package is reinstated by Tesla shareholders.

• In January, a Delaware judge rescinded Elon Musk's 2018 pay package, but Tesla shareholders later voted to ratify it.
• A dozen proposals were presented to shareholders for voting at the annual meeting held in Austin, Texas.
• On Thursday, Tesla shares increased by 2.9% after Musk announced that shareholders were likely to approve his compensation plan and a proposal to relocate the company to Texas.

On Thursday, shareholders approved CEO Elon Musk's 2018 pay plan, despite a Delaware judge ordering Tesla to revoke the package five months earlier due to its improper granting by the board.

The vote in support of Tesla's compensation plan at its annual meeting in Austin, Texas, may not override the court's ruling, but it could provide a public relations victory for Musk and aid his future efforts to sway a court in his favor regarding his performance options.

After the preliminary results were announced, Musk exclaimed, "I just want to say hot d---! I love you guys."

Tesla's compensation package was previously worth as much as $56 billion in stock. However, in January, a Delaware court deemed the pay "unfathomable." Judge Kathaleen McCormick determined that Tesla's board members lacked independence from Musk, failed to properly negotiate with him, and didn't provide shareholders with a complete picture before asking them to vote on his pay plan.

Tesla's stock price increased by 2.9% in regular trading on Thursday, reaching a closing price of $182.47. This rise occurred after Elon Musk posted on Twitter that the proposal was about to be approved. Despite this, Tesla's stock is still down 27% for the year, as the company grapples with declining sales due to an aging range of electric vehicles and intensified competition in China.

The annual meeting concluded with the approval of a proposal by Musk to relocate Tesla's incorporation from Delaware to Texas, where the company's largest U.S. factory is located.

In May 2023, at the last shareholder meeting, Musk predicted that the economy would recover within 12 months, announced that Tesla would produce Cybertrucks in late 2023, and informed investors that Tesla would experiment with advertising and observe its effectiveness.

The latest inflation and employment data suggest some progress. Tesla recently hosted a Cybertruck delivery event in late 2023 and has been promoting it on X, the social media platform acquired by Musk for $44 billion in late 2022.

During the previous meeting, Musk pledged to spend less time on the app in the future, characterizing it as a "short-term distraction."

Despite his busy schedule, Musk continues to devote ample time to other pursuits. In addition to being CEO of SpaceX and Neuralink, he founded xAI last year, which has secured significant funding to develop large language models and an AI chatbot called Grok that leverages data and computing resources from X.

Tesla's CEO, Musk, stated at a meeting that the company is making significant advancements in developing "vehicle autonomy" and believes it can increase the value of the company by ten times.

Since 2016, Musk has promised to deliver fully autonomous technology, but it has not yet been achieved. Meanwhile, competitors such as Pony.ai, Didi, and Waymo have already developed robotaxis and are operating commercial services.

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