Tesla stock soars after Elon Musk says his pay package is likely to be approved and BlackRock and Vanguard reportedly vote in favor

• Tesla stock surged 7% after Elon Musk's pay package neared approval.

• Musk's compensation package is worth $46 billion based on Tesla's current stock price.

• DealBook reported that Vanguard and BlackRock voted in favor of Musk's package.

Tesla stock surged as much as 7% on Thursday after Elon Musk's pay package looked likely to be approved at the company's annual shareholder meeting.

The stock was trading at $188.31 shortly after the opening bell.

Musk said Wednesday evening on X that the company received enough votes to approve his compensation package, which is worth $46 billion based on Tesla's current stock price.

The vote to reincorporate Tesla's business in Texas from Delaware also appears to have passed.

"Both Tesla shareholder resolutions are currently passing by wide margins!" Musk wrote Wednesday night on X.

The results are not certain until the annual shareholder meeting, as investors can change their votes at any time before its conclusion later on Thursday.

According to The New York Times' DealBook, Tesla's passive investors Vanguard and BlackRock voted in favor of the deal. The asset-management titans own a combined 13% of the company's stock.

The Wedbush analyst Dan Ives said the apparent shareholder approval of Musk's compensation package should remove an overhang on Tesla's stock price.

"This removes a $20-$25 overhang on the stock in our opinion that has weighed on shares since the head scratching Delaware ruling set this Twilight Zone soap opera on earlier this year," Ives said Thursday in a note.

There had been concerns that if the vote was not approved, Musk would grow disinterested in Tesla and focus more on his other business ventures.

Ives rated Tesla stock at "outperform" with a $275 price target, which would be an upside of 45% from current levels.

Read the original article on Business Insider