Austin, Texas – Tesla shareholders showed their unwavering support for CEO Elon Musk by re-approving his record-breaking pay pact and giving the green light to a new Texas incorporation. The annual shareholder meeting held in Austin, Texas saw Musk expressing his gratitude, saying, “Hot damn I love you guys,” upon the tabulation of votes.

Shareholders cast their votes, with 77% in favor of the $56 billion compensation package awarded to Musk in 2018, an amount that was voided by a Delaware judge this year and now valued at around $48 billion. The decision to reapprove Musk’s pay pact received 73% support when initially granted six years ago.

The shareholders also voted 84% in favor of re-incorporating Tesla in Texas instead of Delaware, a move made in response to the January ruling against Musk’s pay. The Delaware judge, Kathaleen McCormick, ruled that Tesla’s board did not act in the best interests of the shareholders in approving the $56 billion deal.

The outcome of the vote led to a minimal change in Tesla’s stock during premarket trading on Friday. Musk had anticipated the positive results, mentioning that both proposals were passing by wide margins, leading to a 3% rise in Tesla’s stock during market hours on Thursday.

Despite the shareholder approval, the drama surrounding corporate governance at Tesla may not be over. Shareholders dissatisfied with the results could challenge the legality of the vote in the same Delaware court that invalidated Musk’s pay earlier this year. One shareholder has already filed a lawsuit in Delaware, contesting both Tesla’s pay and redomestication proposals.

Professor Jerry Comizio from American University’s Washington College of Law noted that shareholders might argue that the process leading to the recent vote suffered from similar deficiencies in disclosure, corporate governance, and fiduciary duties that led to the invalidation of the 2018 vote.

Furthermore, Musk’s ongoing legal battles and controversies, including lawsuits related to insider trading, sexual harassment allegations, and conflicts of interest, continue to pose challenges for Tesla’s governance and operations. The company’s interactions with major institutional investors, proxy advisers, and Musk’s influence on shareholder decisions add another layer of complexity to the situation.

Despite the controversies and legal issues surrounding Musk, some investors, like Baillie Gifford, continue to support him, citing his indispensable role in Tesla’s success. The discussions around Musk’s pay package bring attention to the broader issue of corporate governance and executive compensation, highlighting the complexities and controversies inherent in such decisions. Tesla’s upcoming challenges in navigating these issues will be closely watched by stakeholders and industry observers alike.