$Tesla (TSLA.US)$ shares are poised to open sharply higher as they stacked up over 5% in premarket trading on Thursday.
The buoyancy in the stock can be traced back to Musk confirming that Tesla shareholders were overwhelmingly passing the two crucial proposals: re-approving the billionaire's 2018 compensation plan and relocating Tesla's incorporation from Delaware to Texas.
"Both Tesla shareholder resolutions are currently passing by wide margins!" Musk said on X, adding "Thanks for your support!!"
Both Tesla shareholder resolutions are currently passing by wide margins!
Thanks for your support!! pic.twitter.com/udf56VGQdo— Elon Musk (@elonmusk) June 13, 2024
Musk's compensation issue was an overhang on the stock, keeping it depressed in recent sessions. Bernstein analyst Toni Sacconaghi predicted a 5% stock plunge if the proposal didn't get through. The Tesla management activated its machinery in full swing to get the proposal vetted, with C-suite executives and Chair Robyn Denholm urging shareholders to back it.
In January, the Tesla CEO issued an ultimatum stating that if he did not receive a 25% controlling stake, he would prefer building outside of Tesla.
Following Musk's update on the voting pattern, a Tesla influencer asked him on social media whether he would now work toward making the company the most valuable. Musk replied in the affirmative.
Yes
— Elon Musk (@elonmusk) June 13, 2024
The company's annual shareholder meeting is scheduled to be held at 4:30 p.m. EDT on Thursday and it is available for viewing by the public through a livestream.
With the compensation package overhang now nearly in the rearview, the next big catalyst for the stock would be the second-quarter deliveries update in early July and second-quarter results in mid-July. Following these, Tesla is set to unveil robotaxi on Aug. 8.
In premarket trading, the stock rose 6.53% to $188.85, according to Benzinga Pro data.