In a stunning show of support for their controversial leader, Tesla investors have voted to reinstate Elon Musk's monumental $87.8 billion compensation package, delivering a decisive victory for the world's richest person.
The Thursday shareholder meeting saw investors overwhelmingly backing what stands as the largest executive pay deal in corporate history, originally approved in 2018 but voided by a Delaware judge earlier this year over governance concerns.
Texas Bound: Tesla's Strategic Relocation
Beyond the compensation battle, shareholders delivered another win for Musk by approving Tesla's legal relocation from Delaware to Texas. This strategic move follows Musk's very public frustration with the Delaware court system after it blocked his original pay package.
"The company's future is clearly being reshaped around Musk's vision and preferences," noted one industry analyst following the vote.
Governance Shakeup: New Board Members Approved
The shareholder meeting brought additional changes to Tesla's leadership structure. Investors approved bringing two new members onto the board: James Murdoch, former CEO of 21st Century Fox, and Kathleen Wilson-Thompson, who previously served as Walgreens' global human resources chief.
This board expansion signals Tesla's commitment to strengthening its governance framework while maintaining Musk's influential leadership role.
Market Reaction and Future Implications
While the compensation package's approval represents a major personal victory for Musk, significant challenges remain. Tesla faces:
- Intensifying competition in the electric vehicle market
- Declining sales figures in recent quarters
- Ongoing pressure to deliver on autonomous driving promises
- Increasing regulatory scrutiny across multiple markets
The vote outcome demonstrates that despite recent headwinds, Tesla's investor base remains firmly behind Musk's leadership and long-term vision for the company.
