Musk Makes MASSIVE Announcement!

(TheIndependentStar.com) – Tesla shareholders gave a massive thumbs-up to CEO Elon Musk’s controversial $56 billion pay package, clearing the path for the mogul to keep focusing on his major wealth source.

At the annual shareholder meeting in Austin, Texas, shareholders also voted to move the company’s legal home to Texas from Delaware.

Musk hinted that the proposals had strong support and thanked shareholders, sending Tesla’s stock soaring by as much as 6% after Thursday’s opening bell. Tesla ended the day at $182.47, up nearly 3%.

The approval is a “pop the champagne moment for Musk and Tesla shareholders,” said Wedbush analyst Daniel Ives.

“This removes a $20-$25 overhang on the stock in our opinion that has weighed on shares since the head-scratching Delaware ruling set this Twilight Zone soap opera on earlier this year,” Ives noted.

The “yes” vote is the latest twist in the ongoing legal battle over Musk’s pay package. Tesla is trying to overturn Delaware Chancery Court Judge Kathaleen McCormick’s decision in January to void the compensation plan, which she called an “unfathomable sum.”

After her decision, Musk threatened to develop AI and robotics products outside of Tesla if he didn’t get enough voting control, essentially needing the 2018 pay package to be approved.

Moreover, the approval highlights Musk’s support from Tesla’s retail investor base, many of whom are vocal fans of the billionaire. It serves as both an endorsement of Musk’s leadership and a signal that investors do not want to risk the company’s future.

Sandeep Rao, Senior Researcher at Leverage Shares, which owns Tesla’s stock, said, “This vindicates Musk and allays some investor concerns around his waning interest in Tesla.”

The board argued that Musk deserved the package because he met all the ambitious targets on market value, revenue, and profitability. Large investors, like the California Public Employees’ Retirement System, had called the pay package “excessive.”

In turn, Musk could still face a lengthy legal battle to convince McCormick. He might also face new lawsuits over the package, which would be the largest in U.S. corporate history.

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