Resolutions regarding Musk's payment plan and the Texas relocation are supposedly being approved

Resolutions from Tesla shareholders on CEO Elon Musk's $56 billion compensation package and the company's decision to re-incorporate in Texas rather than Delaware were overwhelmingly approved, Musk said on social media on Wednesday.

This week, votes on Musk's contentious compensation package and relocation to Texas were put to a vote by shareholders. Musk said that the resolutions were receiving a lot of support from the market thus far.

"At the moment, both Tesla shareholder resolutions are passing with significant margins! Thank you very much for your support! "Musk said on the social networking site X.

A Delaware judge overturned Musk's compensation package, which was the biggest paid to a corporate CEO to date, earlier this year in response to many lawsuits and shareholder objections.

The decision on its reinstatement and Tesla's re-incorporation in Texas, after Musk's criticism of Delaware's unfavourable conditions, will be made this week.

Numerous significant Tesla stockholders have already expressed their opinions. While the Florida State Board of Administration, Tesla bull Baron Capital, and Cathie Wood's Ark Invest have stated they will vote in favour of the resolution, Norges Bank, Nordea Asset, and two California pension holders have indicated they plan to oppose the package.

According to a note from Barclays analysts, since Musk has guided Tesla to a $1 trillion valuation in recent years, the business might suffer greatly if Musk's compensation plan is not approved. Similar trends were mentioned by Wedbush analysts, who also claimed that Tesla would suffer from the dispute over the compensation plan.

Musk may get up to $56 billion in stock options if the compensation package is approved, however, a recent drop in Tesla's shares has reduced the value to closer to $45 billion.

(Sources: investing.com, reuters.com)