11:33 AM EDT, 06/13/2024 (MT Newswires) -- Tesla (TSLA) Chief Executive Elon Musk's post on X about the electric vehicle maker's shareholders' approval of two key resolutions is a "pop the champagne moment" for both Musk and the company's shareholders and removes a $20-$25 overhang on the stock, Wedbush Securities said in a Thursday note to clients.

Musk said in his post that Tesla shareholders were approving his proposed $56 billion pay package and a proposal to move the company's state of incorporation to Texas from Delaware "by wide margins!" A Delaware judge in January voided the payout plan for Musk, calling it an "unfathomable sum."

The shareholder approval "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," Wedbush analysts, including Daniel Ives, said in the note.

"Based on all of our discussions over the past month, large shareholders at the end of the day knew that voting no would risk Musk potentially eventually leaving as CEO and the risk far overweighed the reward in voting no on this proposal despite some obvious frustration with Musk," the analysts said.

At Tesla's Thursday shareholder meeting, Wedbush also expects Musk to address keeping artificial intelligence initiatives "under the hood of Tesla despite some threats to the contrary," the analysts said.

The brokerage maintained its outperform rating and a $275 price target on the Tesla stock.

The company's shares were up 3.4% in recent trading.

Price: 183.33, Change: +6.04, Percent Change: +3.40