Tesla, (14 June 2024) — Tesla CEO Elon Musk's contentious $56 billion salary package has been approved by the company's investors, following a vote that also endorsed the relocation of Tesla's legal headquarters from Delaware to Texas. The decision, reported by Reuters, reflects investor confidence in Musk despite recent declines in the company's sales and profits.

Elon Musk expressed his gratitude for the support in a post on social media platform X (formerly Twitter).

Earlier this year, a Delaware court deemed Musk's salary package excessive and mandated that Tesla's board of directors negotiate a new contract with him. Musk had hinted that he might leave Tesla if he did not receive the compensation he desired, underscoring his pivotal role in the company's success.

Despite the investor approval, the salary package still faces legal scrutiny. The Delaware court must still decide whether to sanction the new agreement. UC Berkeley law professor Adam Badawi noted, "Even if shareholders approve the old package, it's unclear whether a Delaware court will allow that vote to go into effect." This uncertainty suggests that legal challenges may continue despite the recent investor vote.

The approval to move Tesla's legal headquarters to Texas aligns with Musk's broader relocation of Tesla's operational base to the state, reflecting a strategic shift for the company.

The outcome of the court's review will ultimately determine whether Musk's substantial compensation package will stand, amidst ongoing legal and financial challenges for Tesla.