Tesla shares up after Elon Musk says he is set for victory in $56 billion pay vote

Shares of Tesla popped higher after Elon Musk said shareholders are set to approve his controversial $56 billion pay package and a resolution to move the electric car maker's incorporation to Texas.

The company's stock was up about 3% as of 10:45 a.m. ET.

Tesla shareholders have been voting on two resolutions and can have their say up to the company's annual meeting on Thursday. Most Tesla shareholders had to submit their votes by the end of the day on Wednesday. Others attending the shareholder meeting are eligible to vote in person or online 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.

Musk now said that both of these resolutions are currently passing by "wide margins," without disclosing specifics or his sourcing.

It's likely that even a majority vote for ratification of Musk's pay plan will be challenged in court, and require judicial review, according to Yale law professor Sarath Sanga.

CNBC has reached out to Tesla for comment.

The initial pay package had aggressive targets for Tesla's financial performance and market value — and, while the company has turned into one of the world's largest electric auto makers, a lot has changed since 2018.

Tesla is facing slowing growth and increased competition, especially from Chinese players. In that time, Musk also bought Twitter, now called X, and has