It is currently valued at $44 billion (£34 billion). The package’s worth has dropped along with Tesla’s stock, from as much as $56 billion (£44 billion) to nothing.
Despite resistance from certain significant institutional investors and proxy firms, the proposal was approved.
During the yearly shareholder gathering in Austin, Texas, the billionaire introduced himself as “pathologically optimistic” while standing on stage.
To thunderous cheers, Musk remarked, “If I wasn’t optimistic this wouldn’t exist, this factory wouldn’t exist.”
“But in the end, I succeed. That’s what matters most.”
However, the decision does not end the Delaware court dispute regarding the pay package, which some legal experts predict might go on for months.
In January, the judge declared it to be “unfathomable” and declared it invalid.
Regarding the purchase, which would be the biggest in American corporate history, Musk might possibly be subject to new lawsuits.
In 2018, shareholders originally approved the massive payout.
Boston College Law School professor Brian Quinn stated, “This is not over.”
Professor Quinn stated that the Delaware judge will examine the vote and want Tesla to demonstrate that Musk did not force or illegally influence the process.
The proposal was released by a “conflicted board” with “close personal and financial ties” to the company’s top executive, the judge said, criticizing Tesla’s board for being “beholden” to Musk.
The plan to relocate the company’s legal headquarters from Delaware to Texas was also approved by shareholders.
