Tesla (TSLA) stock ran higher before the market opened Thursday after Chief Executive Elon Musk revealed late Wednesday that shareholders were poised to approve his 2018 $56 billion pay package and to reincorporate the EV giant in Texas, moving it from Delaware.

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Tesla holds its annual shareholder meeting after the market closes on Thursday. Musk couldn’t wait and posted to X late Wednesday that both resolutions are “currently passing by wide margins.”

Musk’s post was accompanied by two graphs, one for each vote, showing that both his compensation deal and the reincorporation questions had passed the “guaranteed win” level. The Tesla head’s social media post came at 10:50 p.m. EST.

The final tallies for the votes will be announced at Tesla’s annual shareholder meeting on Thursday after the market closes. The vote on Musk’s compensation requires a simple majority of votes, excluding those owned by Musk and his brother, Kimbal Musk. Meanwhile, the vote to reincorporate Tesla in Texas necessitates a majority of all shares outstanding, with any uncast votes counted as “no.”

In the run-up to the meeting, there has been concern that Musk would leave the EV company or make moves to shift Tesla efforts and resources to his other companies if he was not awarded his pay package, which is currently valued at around $45 billion.

The vote comes after a Delaware judge ruled against the 2018 package, deciding that the package was excessive and unfair to Tesla investors. The judge criticized Musk’s “extensive ties” with Tesla board members.

Delaware courts could still block a reapproved package.

Tesla Stock Performance

TSLA shares surged more than 6% during premarket action on Thursday. Tesla stock jumped 3.9% to 177.29 on Wednesday, retaking its 50-day moving average after slipping below that key level Tuesday for the first time since May 13.

Last week, Tesla stock fell 0.3% to 177.48 and shares are now down 4.5% in June.

TSLA declined 2.8% in May. Ahead of Thursday trade, TSLA shares have sunk around 30% so far this year.

However, Tesla has rallied since reporting first-quarter earnings and revenue on April 23, finding support just above its 50-day moving average, according to MarketSurge analysis. On April 22, Tesla stock hit a 52-week low of 138.80.

Following Thursday’s shareholder meeting, Tesla then reports second-quarter earnings in mid-July. The company will unveil its “robotaxi” on August 8.

JPMorgan analysts on Tuesday said they expected Tesla to show off a robotaxi prototype, but actual robotaxi revenues could be years away. That followed discussions with Tesla investor relations team.

Tesla stock ranks seventh in the 35-member IBD Auto Manufacturers industry group. The stock has a weak 44 Composite Rating out of a best-possible 99. Shares have a 14 Relative Strength Rating and a 62 EPS Rating.

Please follow Kit Norton on X @KitNorton for more coverage.

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