Musk says Tesla investors voting yes for pay deal

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Tesla boss Elon Musk announced that shareholder votes on his record-breaking payout and the plan to move the company’s legal headquarters to Texas are “currently passing by wide margins.”

Tesla shareholders have been voting on several proposals, including one that could confirm a pay deal for Mr. Musk, initially valued at $56 billion (£43.8 billion) when agreed upon in 2018.

The company is set to announce the official results of the vote at a meeting on Thursday.

Tesla did not immediately respond to a request for comment from BBC News.

In a post on social platform X, formerly known as Twitter, Mr. Musk thanked his supporters.

However, legal experts note that it is uncertain whether a court that previously blocked the deal will accept the re-vote, which is non-binding, and permit the company to reinstate the pay package.

Earlier this year, a Delaware judge voided the compensation deal after a small investor filed a lawsuit.

The judge found the sum to be “unfair” and criticized the process for determining the package, which was overseen by a board dominated by Mr. Musk, as “deeply flawed.”

Tesla labeled the decision “fundamentally unfair and inconsistent with the will of the stockholders.”

The company then resubmitted the deal for another vote and asked its shareholders to support a plan to reincorporate outside of Delaware.

The board has argued that Mr. Musk deserves the package because Tesla achieved its ambitious targets under his leadership, and it is necessary to ensure he remains committed to the company.

Tesla executives also voiced their support for the package on social media, emphasizing Mr. Musk’s crucial role in the company’s success.

Meanwhile, Mr. Musk offered a personal tour of Tesla’s Texas factory to some shareholders who supported him.

The package, estimated to be worth 300 times what the highest-paid US executive made last year, was backed by 73% of shareholders who voted six years ago.