Elon Musk says Tesla shareholders are voting in support of his $56 billion pay plan.

 Tesla shareholders were ready to approve Elon Musk's $56 billion pay plan, which was considered a vote of confidence in his leadership and an incentive to keep his focus on the electric vehicle company.

Musk released a chart on his social media platform X late on Wednesday showing that the resolution and another vote to relocate the company's legal headquarters to Texas were expected to pass by large margins, though shareholders can amend their votes up until the commencement of the annual meeting.

A source familiar with the preliminary voting results confirmed that Musk provided an accurate count of the figures. The decision will be made at a meeting at Tesla's headquarters in Texas on Thursday at 4:30 p.m. EDT (2030 GMT).
"Thanks for your support!" Musk stated.
The Tesla CEO may still face a lengthy legal battle to persuade a Delaware judge, who disqualified the package in January, calling it "unfathomable." He may also face new litigation following Thursday's voting on the 2018 package, which would be the largest in US business history.

Shareholder approval would be both an affirmation of Musk's tenure and an acknowledgement that investors are unwilling to jeopardize the company's future.
In January, Musk threatened to establish AI and robotics technologies outside of Tesla if he did not win enough voting authority, which would effectively necessitate approval of the 2018 pay package. He has moved the company's attention to robotaxis, abandoning cheaper mass-market electric vehicles, to the dismay of some investors who believe the autonomous technology will be difficult to master.

Tesla's share price has fallen by almost 60% since its 2021 top, as EV sales have slowed and Musk's focus has shifted between Tesla and other businesses he owns. Tesla stock was up 3.8% on Thursday afternoon.
"This vindicates Musk and allays some investor concerns about his waning interest in Tesla," said Sandeep Rao, senior research analyst at Leverage Shares, which owns Tesla stock.
Robyn Denholm, board chair, stated in a regulatory filing earlier this month that resuming the pay package was vital for "retaining Elon's attention and motivating him."
The board said Musk deserved the package because he met all of his lofty aims for market value, sales, and profitability.
Major proxy firms Glass Lewis and Institutional Shareholder Services had recommended shareholders oppose the remuneration package, and important investors such as Norway's sovereign wealth fund and major US pension funds have stated that they would vote against it.
 
The compensation package is excessive and may allow Musk to strengthen his shares "at the expense of diluting the value of those belonging to other shareholders," according to Marcie Frost, CEO of the California Public Employees' Retirement System.
Tesla has been drumming up support for Musk's pay package, particularly among retail investors, who account for an unusually large amount of the company's ownership but rarely vote. According to a person familiar with the numbers, the support stemmed from a combination of large institutional investor and retail investor ballots.
Company officials have posted statements on platform X, stating that Musk is vital to Tesla's growth. Tesla has sponsored social media commercials, and Musk has pledged to give select shareholders who voted a personal tour of the company's Texas factory.
Tesla shareholders also voted on other proposals, including the re-election of two board members: Musk's brother Kimbal Musk and James Murdoch, the son of media magnate Rupert Murdoch.