Elon Musk vows Tesla traders will approve his report £44bn pay deal

Elon Musk declared victory last night ahead of a vote by Tesla shareholders on his record £44billion pay package.

Just hours before the electric car maker’s annual meeting, the billionaire said investors were set to approve the highest-ever pay deal in US corporate history.

‘Both Tesla shareholder resolutions are currently passing by wide margins,’ Musk wrote in a post on X. ‘Thanks for your support!’

Tensions have mounted since a Delaware court voided his compensation package in January, finding it had been inappropriately set by the board.

Musk, one of the world’s richest men, has been rallying support after a flurry of shareholders suggested they would revolt.

Record pay: Tesla boss Elon Musk (pictured) said investors were set to approve his £44bn package

Influential proxy advisers, Institutional Shareholder Services and Glass Lewis, opposed the deal and Tesla’s eighth-largest shareholder, Norway’s sovereign wealth fund, came out against the package.

The deal, set six years ago, was tied to performance targets, such as the share price and profits, and meant Musk was entitled to £44billion.Musk, worth an estimated £154billion, does not receive a salary at Tesla.

In January, a US judge struck down the package but directors insisted the pay was aimed at keeping Musk incentivised as he juggles owning several other companies including X, and satellite firm Space X, amid fears he may walk away from Tesla.

Dan Ives, tech analyst at Wedbush Securities, said a vote in the tycoon’s favour would show that ‘Tesla is Musk and Musk is Tesla.’ 

He added: ‘In a nutshell, if this proposal went south a lot of bad things and scenarios could have happened, including Musk beginning a path to not being chief executive officer. 

‘Instead it’s roses and rainbows in Austin although demand challenges remain and this is pivotal period for Tesla and Musk to navigate this turbulent period.’

Last night’s pay deal vote was not legally binding.

That means that Musk could face legal challenges, including the prospect of the Delaware courts still not recognising the vote and still voiding the deal.

‘A vote by shareholders wouldn’t cause an automatic reversal of [the court’s] decision. We are in uncharted waters here,’ said Samantha Crispin, attorney at law firm Baker Botts.

Tesla shares climbed 3.7 per cent last night.