Tesla Shareholders Approve $56 Billion Compensation Package for Elon Musk
At a recent shareholders meeting, shareholders of Tesla voted in favor of the $56 billion compensation package for CEO Elon Musk. The approval also included the move from Delaware to Texas as the company's legal domicile. This decision, which corresponds to the combined economic output of Iceland and Malta, was announced by Tesla, signaling a significant move for the company.
Following the announcement, Musk took to the stage to express his gratitude, stating, 'Damn guys, I love you.' While Tesla did not disclose the percentage of 'yes' votes, the approval of Musk's compensation package is seen as a strong vote of confidence by investors.
It is noteworthy that the package had previously been overturned by a court in Delaware, but Musk had indicated the night before, based on electronically received votes, that a large majority of shareholders were in favor of the proposals. This affirmation from shareholders seemed to uplift Tesla's stock, with a 29% increase in its closing on Wall Street. The positive momentum continued after hours.
Reflecting on the event, Dan Ives, an analyst at Wedbush, remarked, 'Tesla is Musk, and Musk is Tesla.' The resounding approval by shareholders further solidifies Musk's position within the company and signifies a strong show of support for the direction in which Tesla is headed.
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