The outcome will remove a big risk that analysts and investors have been wary of Mr Musk’s threat to take his artificial-intelligence ideas elsewhere upon a rejection of his pay plan. 

That would have spelled disaster for a stock whose pricey valuation depends on an AI story that falls flat without its boss.

“This removes a $20 to $25 overhang on the stock,” Wedbush analyst Daniel Ives wrote in a research note to clients, referring to the results touted by Mr Musk.

Mr Ives also noted that challenges remained for Tesla — choppy demand for electric cars, and the arduous task of building a truly self-driving vehicle.

The debate on whether Tesla is a car company or a technology firm is longstanding, but a slowdown in electric vehicle demand and a surge of competitors has made this distinction even more crucial. 

The massive profit margins that it once brought in from electric car sales are largely a thing of the past. Tesla’s transformation into an AI company will hinge on its ability to develop self-driving cars, an ambitious project that many see as years or even decades away. 

For many investors, Mr Musk’s focus on this goal is what gives them confidence. Any doubts about his commitment to the company tend to weigh heavily on the valuation, which is by far the priciest among the tech giants.

JP Morgan analyst Ryan Brinkman had likened Thursday’s vote with the one for the company’s acquisition of SolarCity.

“Investors we spoke with then largely did not support the Solar City acquisition, but worried there would be a more negative share price reaction in the event the transaction were voted down, given the perception of a vote of no confidence,” the analyst added.

• Bloomberg