It’s a Yes, Says Elon Musk. Investors Give Tesla CEO A Big Vote Of Confidence.


They like him. They really do like him.

Tesla investors looked set to re-approve CEO Elon Musk’s 2018 $56 billion compensation package.

Musk tweeted a running vote tally on Wednesday evening that shows support for the pay packaging crossing over the required 50% line. He added “Thanks for your support!!” in the tweet.

The results are preliminary, according to Musk, and not final until the polls close at the meeting on Thursday.

The status of Musk’s compensation package, awarding him some 300 million incentive-laden stock options, has been an overhang on Tesla shares for months. A Delaware judge voided the pay package in January, citing inadequate disclosures to Tesla investors.

Investors can expect shares to react positively to the news. With the pay package overhang removed, Tesla stock is moving higher.

Shares were up 5.1% at $186.39 in premarket trading, while S&P 500 and Nasdaq Composite futures were flat and up 0.5%, respectively.

Options markets implied the stock would move about 7%, up or down, following the decision. It also showed that investors were more worried about a big drop. Musk’s tweet is a relief for Tesla shareholders.

It also appears at the time of Musk’s tweet that shareholders look set to approve a re-incorporation in Texas. Tesla is leaving Delaware partly because of the judge’s decision. Musk included a vote tally for that item as well.

Tesla hosts its annual shareholder meeting on Thursday afternoon in Texas. Preliminary results for all items shareholders are voting on this year will likely be given out around 5 p.m. Eastern time. Final tallies are typically announced in a filing with the Securities and Exchange Commission a few days after the meeting wraps up.

The results shouldn’t change though. If the re-approval of the pay package is confirmed it means shareholders have given Musk a big vote of confidence.

Coming into Thursday trading, Tesla stock is down about 29% year to date. Slowing growth has weighed on investor sentiment. Wall Street projects 1.8 million deliveries for Tesla in 2024, according to FactSet, essentially flat with the number of cars delivered in 2023.

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