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Tesla Shareholders Greenlight Elon Musk’s $56 Billion Pay

Tesla CEO Elon Musk

Tesla shareholders have voted to reinstate CEO Elon Musk’s colossal 2018 pay package, despite a Delaware judge's earlier order to rescind it. 

The pay plan is worth up to a staggering $56 billion in Tesla stock.

It was deemed to have lacked independence, failed to negotiate at arm's length or fully inform shareholders before the vote.

The vote, held at Tesla's annual meeting in Austin, Texas, does not override the court ruling.

However, it serves as a public relations victory for Musk. 

It may also bolster his efforts to persuade the court to eventually grant him his performance options. 

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Following the announcement of the preliminary results, Musk expressed his gratitude to the shareholders.

He said : “I just want to start off by saying hot d---! I love you guys.”

Tesla shares rose 2.9 percent in regular trading on Thursday, June 13, closing at $182.47.

This followed Musk's post on X that indicated the proposal was set to be approved. 

However, the stock remains down 27 percent for the year.

This reflects challenges like declining sales and increased competition in China.

The annual meeting also included votes on a dozen proxy proposals.

One of the biggest votes was on Musk's proposal to move Tesla from Delaware to Texas, where the company’s largest US factory is located. 

Shareholders approved this move.

Musk's pay could reach as much as $56 billion

At the previous shareholder meeting in May 2023, Musk had predicted an economic rebound within 12 months,

He also announced the production of Cybertrucks for late 2023, and mentioned plans to experiment with advertising. 

Recent economic indicators suggest some improvement.

Tesla has also begun advertising, including on X, the social media platform Musk acquired in 2022.

During last year’s meeting, Musk had pledged to spend less time on X, describing it as a "short-term distraction." 

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Despite this, he continues to juggle multiple roles, serving as CEO of SpaceX, Neuralink, and the newly founded xAI, which focuses on developing AI technologies.

He remains optimistic about Tesla's future, particularly in developing vehicle autonomy. 

He claimed advancements in self-driving technology could "10x the value of the company." 

Musk has been making the same promise since 2016, but the technology has yet to materialize.

Tesla's competitors like Pony.ai, Didi, and Waymo have made significant strides in commercial robotaxi services.

Regarding the Cybertruck, Musk reported that deliveries are increasing, with a record of 1,300 shipments in a week. 

He also announced plans to begin limited production of the Optimus humanoid robots in 202.

Thousands are expected to work in Tesla factories by next year.

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