Tesla CEO Elon Musk said shareholders of the company had voted in favor of his $56 billion pay package as well as his plan to move the company’s incorporation to Texas.

“Both Tesla shareholder resolutions are currently passing by wide margins!” he wrote on X. “Thanks for your support!!” The post shows charts projecting the outcome of the shareholder elections, but shareholders can technically change their vote at any time prior to the annual meeting.

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As Valuetainment previously reported, Elon Musk expanded the vote on his controversial $56 billion pay package to his retail investors after the EV company’s major shareholders showed signs of hesitation. All Tesla shareholders will vote at the June 13th annual meeting to approve Musk’s pay package. Should he win, he will control over 20 percent of the company. It is not clear what will happen if the vote is struck down, but some argue it will not nullify the judge’s rule either way. Musk will still need to finish his legal battle with a Delaware judge, who previously blocked the package on the grounds that it was “unfathomable.”

The package was set to be the most expensive in American corporate history. In 2018, Musk agreed to become the CEO for one decade, and Tesla struck a deal to pay him 20.3 million stock options estimated to be worth around $55 billion at the time.

The judge argued that the board’s directors were too beholden to Musk to be impartial approvers.

Musk already moved the incorporation of SpaceX from Delaware to Texas in February, and reiterated at the time that no one, in his opinion, should do business in Delaware.

Tesla’s headquarters is already in Austin, Texas (having moved from California in 2021), so Tesla Board Chair Robyn Denholm argued that it makes sense for the company to be incorporated there too. “We do not agree with what the Delaware Court decided, and we do not think that what the Delaware Court said is how corporate law should or does work,” Denholm wrote in a letter attached to an April SEC filing.

“2024 is the year that Tesla should move home to Texas,” she wrote in a different letter to shareholders. “We are asking for your vote to approve Tesla’s move from Delaware, our current state of incorporation, to a new legal home in Texas. Texas is already our business home, and we are committed to it.”

Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.

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