Musk posted a chart on his social media platform X late Wednesday that showed the resolution – and another vote to move the company’s legal home to Texas-were set to pass by wide margins, though shareholders are allowed to change their vote up to the start of the annual meeting.
A person familiar with the preliminary voting tally confirmed that Musk posted an accurate count of the figures. “Thanks for your support!” Musk said.
The Tesla CEO could still face a long legal fight to convince a Delaware judge who invalidated the package in January, describing it as “unfathomable”. He may also face fresh lawsuits over Thursday’s vote on the package, which dates from 2018 and would be the largest in US corporate history.
Shareholder approval would serve as both an endorsement of Musk’s tenure and an acknowledgment that investors don’t want to risk the company’s future. Tesla’s share price has dropped about 60% from its 2021 peak as EV sales have slowed and Musk’s attention has wavered between Tesla and other companies he runs.
“This vindicates Musk and allays some investor concerns around his waning interest in Tesla,” said Sandeep Rao, senior researcher at Leverage Shares, which owns Tesla’s stock. reuters