There are presidents who would dream of such overwhelming support. He's no longer a boss, he's an idol. Like a rock star, Elon Musk took to the stage dancing at Tesla's Annual Stakeholder Meeting. "I love you guys. We have the most awesome shareholder base of any public company," he told his fans in Austin, Texas, on Thursday, June 13. It has to be said that the genius of the shareholders – and particularly the individuals, who represent almost 30% of its capital – involved approving, for the second time, a pay package of almost $48 billion (€44.5 billion) for the CEO at the value of the current share price.

This jackpot is not new money, but shares in his company, which he will be able to buy at the 2018 price, the date of the first vote on this compensation. At the time, very few people thought such an achievement was possible. The company was valued at less than $60 billion, which was already considerable for such a small automaker.

The plan called for payment in 12 installments, the first starting at a valuation of $100 billion, then in $50 billion increments up to a ceiling of $650 billion. It was absurd at the time; even Toyota, the world leader in the sector, was worth three times less than that. Yet Tesla did much better, reaching the $1 trillion mark in November 2021. The firm was no longer considered a manufacturer of cars, but of computers on wheels, and should therefore be compared to Apple or Microsoft rather than Volkswagen.

Since then, the euphoria has subsided. The company lost 27% of its value in 2024 and its valuation has fallen back to $570 billion, which is still twice as much as Toyota. In light of its performance in 2023, Musk won his bet. But, following a complaint from a shareholder, the court in Delaware, where the company is registered, ruled against this extravagant pay package, judging that the board of directors was not independent and that shareholders were not sufficiently well informed. Hence Thursday's confirmation vote, intended to show the judges that the shareholders had acted in good conscience. This would allow the Tesla CEO to increase his stake in the company from 13% to over 20%.

However, it's not over yet: The Delaware court has yet to rule. The company hopes that this new vote will invalidate the court's grievances. Incidentally, the company's board of directors took the opportunity to seek approval for the legal headquarters to be relocated to Texas, which has far less scrutiny over governance issues.

You have 28.07% of this article left to read. The rest is for subscribers only.