Tesla shareholders have greenlit Elon Musk’s controversial $48 billion pay package at the company’s annual meeting, overturning a prior Delaware court decision that deemed it excessive. The package, originally valued at $56 billion in 2018, faced scrutiny from Judge Kathaleen McCormick, who described it as an “unfathomable sum.” Despite this, shareholders supported its reinstatement, signaling confidence in Musk’s leadership and Tesla’s future.

In addition to the compensation vote, shareholders also endorsed Tesla’s relocation of its state of incorporation to Texas. This move aligns with Musk’s previous threats, emphasizing his commitment to favorable business environments.

While the shareholder approval is a pivotal step, it does not nullify the court’s ruling, leaving room for legal challenges. Bloomberg notes Tesla’s likely intention to appeal, citing the shareholder vote as backing for their stance.

Musk expressed satisfaction with the outcome, addressing shareholders warmly during the meeting but clarifying that the pay package is tied to Tesla’s stock performance over five years, not immediate cash flow. His remarks underscored his long-term dedication to Tesla’s success amid ongoing legal and financial discussions.