Tesla shares pop on Elon Musk hinting at $56B pay package ratification

(Credit: Tesla China)

Tesla shares popped on Thursday morning after CEO Elon Musk hinted that his $56 billion pay package had been ratified by shareholders.

Perhaps the biggest issue on the card for this evening’s Shareholder Meeting is that of Musk’s pay package. After it was approved in 2018, it was then ruled to be an “unfathomable sum” by a Delaware Chancery Court Judge earlier this year, who voided the compensation plan.

This sent Tesla to make immediate arrangements to have the pay package ratified by shareholders in an attempt to get Musk paid.

There were some concerns as large retail and institutional shareholders and investors were not necessarily on board with ratifying the pay package.

However, many retail shareholders and die-hard Musk supporters petitioned to get the pay package reapproved, which has evidently happened, based on a post on X from the Tesla CEO.

Tesla shares popped over six percent in early trading hours but have cooled off since. As of 11:29 a.m. EDT, Tesla shares were up over 3 percent, trading at $183.83.

The shares might have jumped on the news because the development is massively positive for Tesla and its future. Musk could have potentially left Tesla if the compensation package was not ratified, which would have left the company and its investors in an awkward position.

This is due to Musk’s influence and credibility in the sector. It’s no secret Tesla is widely successful because of Musk’s leadership, and now that the pay package has been unofficially ratified, investors may feel more security in terms of the future.

Disclosure: Joey Klender is a TSLA Shareholder.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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