Future of Elon Musk and Tesla are on the line as shareholders vote on massive pay package

  • 📰 AP
  • ⏱ Reading Time:
  • 71 sec. here
  • 24 min. at publisher
  • 📊 Quality Score:
  • News: 105%
  • Publisher: 51%

Delaware News

Tesla,Inc.,Elon Musk

If Tesla shareholders approve an all-stock compensation package for CEO Elon Musk that was thrown out by a Delaware judge, it would almost guarantee he would remain at the company he grew to be the world leader in electric vehicles. If they vote against restoring Elon Musk’s $44.

If Tesla shareholders vote to approve Elon Musk’s $44.9 billion pay package that was thrown out by a Delaware judge in January, it would almost guarantee he would remain at the company he grew to be the world leader in electric vehicles, shifting to AI and robotics including autonomous vehicles, which Musk says is Tesla’s future.FILE - Tesla CEO Elon Musk leaves the Tesla Gigafactory for electric cars after a visit in Gruenheide near Berlin, Germany, March 13, 2024.

Musk has run into trouble with statements about Tesla that he’s made on X before he owned it and on Thursday, the company filed Musk’s comments on preliminary results Wedbush Analyst Dan Ives said he expects the package to be overwhelmingly reapproved, ending a lot of uncertainty with Musk. “This issue has been an overhang on Tesla’s stock, and this will be important to move this distraction in the rearview mirror,” Ives wrote in a note to investors.

Multiple institutional investors have come out against that sizeable payout, some citing falling vehicle sales, price cuts and the tumbling Tesla stock price. But Tesla’s top five institutional shareholders, Vanguard, BlackRock, State Street, Geode Capital, and Capital Research either said they don’t announce their votes or wouldn’t comment. They control about 17% of the votes.

“Only 2 days left to protect & help grow the value of your investment in $TSLA by voting FOR ratification of the 2018 CEO Performance Award,” Tesla posted on X early Tuesday. If Tesla finalizes the vote on moving the company’s legal home to Texas before the vote on Musk’s pay package, and it manages to file the paperwork in Austin and get approval of the move, then the effect of the Delaware court ruling could be in doubt. Reapproval of the pay package would then be done as a Texas corporation and could fall under the purview of Texas courts.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 728. in ENERGY

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Elon Musk claims he is set for victory in $56 billion Tesla pay voteElon Musk said Tesla shareholders are set to approve his $56 billion pay package and a resolution to move the electric carmaker's incorporation to Texas.
Source: CNBC - 🏆 12. / 72 Read more »

Elon Musk says Tesla stockholders approving his $56 billion pay package by 'wide margins'Tesla CEO Elon Musk says the electric vehicle company's shareholders are voting 'by wide margins' to approve his multibillion-dollar pay package.
Source: CBSNews - 🏆 87. / 68 Read more »

Tesla Votes On Elon Musk Compensation More Complicated Than I ThoughtClean Tech News & Views: EVs, Solar Energy, Batteries
Source: cleantechnica - 🏆 565. / 51 Read more »