Elon Musk dances with joy as Tesla shareholders restore his £35billion pay package

Elon Musk danced with joy and said “hot damn, I love you guys” after Tesla shareholders voted to restore his record $44.9 billion (£35 billion) pay package that was thrown out by a judge earlier this year.

The company said the shareholders had voted in favour of Mr Musk’s compensation plan, which initially was approved by the board and stockholders six years ago.

“It’s incredible,” a jubilant Mr Musk told the crowd gathered at Tesla’s headquarters and factory in Austin, Texas.

“I think we’re not just opening a new chapter for Tesla, we’re starting a new book.”

The package is worth an estimated 300 times what the top-earning boss in the US made last year, although the exact amount depends on the Tesla share price.

The board said he deserved the package because Tesla achieved its ambitious targets under his leadership and that it was necessary to ensure he remains dedicated to the company.

However, the favourable vote does not necessarily mean that Mr Musk will get the all-stock compensation anytime soon.

The package is likely to remain tied up in the Delaware Chancery Court and Supreme Court for months as Tesla tries to overturn the rejection.

Tesla last valued the package at $44.9 billion in an April regulatory filing.

It was once as much as $56 billion (£43.8 billion) but has declined in value in tandem with Tesla’s stock, which has dropped about 40 per cent in the last 12 months.

Judge Kathaleen (CORRECT) McCormick ruled in January in a shareholder’s lawsuit that Mr Musk essentially controlled the Tesla board when it ratified the package in 2018, and that it failed to fully inform shareholders who approved it the same year.

Tesla has said it would appeal, but asked shareholders to reapprove the package at yesterday’s annual meeting.

Legal experts say the issue of Musk’s pay will still be decided in Delaware, largely because his lawyers have assured the judge that they will not try to move the case to Texas.

Charles Elson, a retired professor and founder of the corporate governance centre at the University of Delaware, said he does not think the vote will influence Ms McCormick, who issued a decision based on the law.

However, John Lawrence, a Dallas-based lawyer, said the new shareholder vote gave Tesla a strong argument to get the ruling overturned.

He expects Mr Musk and Tesla to argue that shareholders were fully informed before the latest votes, so Ms McCormick should reverse her decision.

If the ruling stands, then Mr Musk is likely to appeal to the Delaware Supreme Court, legal experts said.