Tesla shareholders approve Musk's $56B pay package

Tesla shareholders have voted to approve CEO Elon Musk’s 2018 stock option compensation package, potentially worth $56 billion, making it the largest CEO compensation plan in history.

The vote took place during Tesla's annual meeting at its Texas gigafactory, where shareholders also agreed to re-incorporate Tesla in Texas, moving it from Delaware.

Musk, who received a standing ovation at the meeting, celebrated the decision, stating,

I think we’re not just opening a new chapter for Tesla, we’re starting a new book.

However, the approval does not guarantee the payout; a Delaware judge must still issue a final ruling on the legality of the package after a lawsuit filed by shareholder Richard Tornetta challenged its fairness.

Support for Musk's compensation has been widely covered on social media, and Musk has communicated directly with supporters. Despite shareholder approval, legal challenges continue, including lawsuits alleging insider trading and diversion of resources to Musk's other ventures, such as xAI.