In a bold move, Tesla seeks to reinstate a controversial $56 billion compensation package for CEO Elon Musk that was previously rejected by a judge in Delaware. Additionally, the electric car company aims to relocate its corporate home from Delaware to Texas, where Musk has already moved the company’s headquarters. The unprecedented decisions will be put to a shareholder vote during Tesla’s annual meeting on June 13.
Despite Tesla’s record deliveries of over 1.8 million electric vehicles worldwide in 2023, the value of its shares has plummeted this year amid softening demand for electric vehicles. Musk’s future compensation remains a key issue, with the CEO demanding to own 25% of Tesla shares in order to pursue artificial intelligence and robotics projects at the company. However, the proxy statement filed with the Securities and Exchange Commission does not address this demand, leaving uncertainty surrounding Musk’s role and future plans at Tesla.
Wedbush analyst Dan Ives highlights concerns over Tesla’s future growth and Musk’s commitment to the company. The filing fails to address pivotal issues such as Musk’s tenure as CEO and the development of artificial intelligence at Tesla. With Tesla experiencing stock slides and recent layoffs, stakeholders are wary of the company’s direction as Musk’s influence seems to wane. The upcoming shareholder vote will determine not only Musk’s compensation package but also the trajectory of Tesla’s future in a competitive and evolving market.