It looks like X owner and CEO of Tesla and SpaceX is going to need a bigger wallet, as Tesla shareholders voted to reinstate his mammoth $56 billion pay package Thursday after a Delaware judge spiked it January. Shareholders also approved Musk’s bid to move the company’s corporate headquarters from Delaware to Texas, where the automaker has its largest factory. Tesla shares jumped 2.9 percent on the news.
Musk was jubilant after the vote, just as I would be if I found out I might be making $56 billion:
Elon Musk dance is 🔥. Tesla shareholders have spoken. pic.twitter.com/GiLWOtt8ZI
— Tesla Owners Silicon Valley (@teslaownersSV) June 13, 2024
It’s unclear whether he will actually get the money, though, as his battle will continue:
But the fight over the $56 billion isn’t over. The Delaware judge who struck down Musk’s compensation in January is likely to be asked to rule on whether the latest shareholder vote was fair under the state’s business laws. And last week, a different Tesla shareholder from the one involved in the earlier case filed a new lawsuit, arguing that the second vote should be ruled invalid.
Either way, Texas Gov. Gregg Abbott is glad to have him in the state:
Congrats Elon on getting the pay you were promised and on your new incorporation in Texas.
Welcome to a state that has neither a personal nor a corporate income tax. https://t.co/HOKd9oOcFA
— Greg Abbott (@GregAbbott_TX) June 13, 2024
The judge previously ruled that the pay, which consists of stock options tied to Tesla’s hitting various performance benchmarks, was excessive:
The compensation package was previously worth as much as $56 billion in Tesla stock. In January, a Delaware court called the pay “unfathomable.” Judge Kathaleen McCormick found that Tesla’s board members lacked independence from Musk, failed to properly negotiate at arm’s length with the CEO and didn’t to give shareholders the full picture before asking them to vote on his pay plan.
An obviously pumped-up Musk told the shareholders he loved them:
HOT DAMN I LOVE YOU GUYS! ♥️
一 Elon Musk pic.twitter.com/mIt1fZ9Qi3
— DogeDesigner (@cb_doge) June 13, 2024
He’s hardly strapped for cash, though, and has a net worth of about $207 billion, which makes him currently the world’s richest person (although on any given day Amazon founder Jeff Bezos or French businessman Bernard Arnault can take the top spot, depending on the stock market).
Although this is obviously good news for Musk, Tesla has had a bumpy road recently as electric vehicle sales have slowed amid lowered demand. The stock was up almost three percent Thursday, as mentioned, but it’s still down 27 percent for the year:
Tesla Stock Taking a Beating As Electric Vehicle Demand Plummets
Still… it must be good to be Elon Musk.
