Shares of Tesla popped in premarket trading, after Elon Musk said shareholders are set to approve his controversial $56 billion pay package and a resolution to move the electric carmaker’s incorporation to Texas.

At 08:12 a.m. ET on Thursday, Tesla shares were 6.39% higher in premarket trading

Tesla shareholders have been voting on two resolutions and can have their say up to the company’s annual meeting on Thursday. The first measure under consideration is whether to green light a $56 billion pay package that shareholders originally approved in 2018, before being voided by a Delaware judge in January.

The second resolution is whether Tesla should transfer its state of incorporation from Delaware to Texas. That proposal was put forward after Musk asked his followers on social media platform X earlier this year whether Tesla should carry out such a move — to a resounding yes.

Source: CNBC