Khaberni - Tesla CEO Elon Musk scored a resounding victory on Thursday after shareholders approved a compensation package that could reach $878 billion over the next decade, thereby endorsing his vision to transform the electric car manufacturing company into a giant in artificial intelligence and robotics.
Tesla's shares jumped more than three percent in after-hours trading. The proposal was approved with more than 75 percent in favor.
Shareholders also re-elected three directors to Tesla's board and voted in favor of an alternative compensation plan for Musk's services as a legal challenge had halted a previous package.
Analysts say the vote was positive for Tesla's stock, which valuation depends on Musk’s vision for expanding self-driving vehicles and the broader rollout of autonomous taxis across the United States, and selling human-like robots, despite his extreme right-wing political rhetoric damaging the Tesla brand this year.
Musk's victory was largely anticipated, as the billionaire was allowed full voting rights for his approximately 15 percent stake after the car manufacturing company moved to Texas from Delaware where a legal challenge had stopped an earlier wage increase.
The approval came despite opposition from some major investors, including the Norwegian Sovereign Wealth Fund.
Tesla’s board had stated that Musk might resign if the compensation package was not approved.
