Tesla (NASDAQ:TSLA) CEO Elon Musk said his enormous stock grant has the votes to pass at today’s shareholder meeting. In response, TSLA stock rose 6.5%.
A post that Musk shared on his personally owned social media site X, formerly Twitter, showed “yes” votes on the resolutions streaming in over the last two days.
Shares that were trading near $170 early on June 12 were trading near $189 each before trade opened this morning. The move added $36 billion to the company’s market capitalization.
Musk also believes the company’s move to Texas from Delaware will pass. Texas changed its laws to attract business headquarters in recent years.
A Musk Win?
Musk threatened to leave Tesla if the measures weren’t passed. The grant was given as an option in 2018, based on the stock’s performance. Tesla shares are up over 1,100% over the last five years.
A Delaware Chancery Court nullified the grant in January, calling it excessive. Since then, Musk has campaigned to have it reinstated. He has also campaigned against the contingency fee sought by lawyers on the other side, 10% of the amount being denied.
The value of the package has been reported to range from $47 billion to $56 billion. Its ultimate value depends entirely on the stock price. If it falls, the grant will be worth much less. If it rises it will be worth more.
The stock action indicates that investors support what Musk is doing at Tesla and want him to remain. Even with the overnight gains, TSLA stock is down 28% from where it started the year.
Regardless of how the vote goes, Musk will remain the world’s richest person. Forbes estimates his net worth at $209 billion, $5 billion ahead of Amazon (NASDAQ:AMZN) founder Jeff Bezos.
TSLA Stock: What Happens Next?
Time will tell whether the stock grant was worthwhile to Tesla shareholders. The fight was certainly worthwhile to Musk.
As of this writing, Dana Blankenhorn had a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
