At the investor event, Elon Musk took to the stage to do a victory dance but the company has only won its first battle.
Tesla announced during its annual meeting on Thursday that it had won approval for Elon Musk’s pay package after weeks of campaigning.
Musk was quick to celebrate the win: “Hot damn! I love you guys”, he said.
At the event, Musk took to the stage to do a victory dance but the company has only won its first battle.
Despite investor approval, Musk won’t get his pay package back just yet. The next step: Tesla must take the issue back to court.
Musk’s pay plan was initially approved in 2018 but was struck down by a Delaware judge in January after a Tesla shareholder filed a lawsuit alleging the agreement was “beyond the bounds of reasonable judgment.”
Tesla has yet to reveal how many investors voted in favor of the proposal. The company also passed a proposal to move its state of incorporation from Delaware to Texas on Thursday, but that vote to move won’t allow Tesla to sidestep the ruling quite yet. It will still be up to the Delaware courts to decide whether the pay plan can be reinstated.
“The lawsuit in Delaware will continue”, Ann Lipton, a business law professor at Tulane University Law School, told Business Insider.
