Varney & Co. host Stuart Varney discusses whether Elon Musk’s latest tech bet will pay off for investors.
Tesla CEO Elon Musk Tesla is encouraging shareholders to vote their shares by offering them the chance to win a private guided tour of the company’s Texas factory, as the company’s board of directors asks shareholders to reinstate its $56 billion compensation package.
Tesla is offering shareholders the chance to win a tour of the Tesla Gigafactory in Austin, Texas, and the Cybertruck and Model Y production lines led by Musk and Tesla’s chief designer, Franz von Holzhausen.
The tour will take place on June 12, with the winner awarded a seat at Tesla’s annual shareholder meeting, where the vote will be finalized on June 13, although shareholders can also vote online in advance.
In the announcement, Tesla Shareholders “Please submit only evidence that you voted, not how you voted. You do not have to vote for or against any proposal to be eligible to apply.” Shareholders are eligible to vote if they are registered on the shareholder register or are a beneficial owner as of the close of business on April 15 and if they submit evidence of their vote by midnight on June 7.
Tesla shareholders urged to reject Elon Musk’s $56 billion compensation package
Tesla CEO Elon Musk is offering shareholders the chance to win an exclusive tour of the company’s Austin factory if they vote before the company’s upcoming annual meeting. (Photo: Taylor Hill/Getty Images/Getty Images)
Musk shared the Tesla post on X (formerly Twitter), providing information about the contents and asking shareholders to “let us know if you have any questions about voting your Tesla shares.”
Musk’s $56 billion compensation plan was by far the largest of any publicly traded U.S. CEO. The case was dismissed by a Delaware judge. In January.
The judge ruled that Tesla’s board had not adequately disclosed its personal relationship with Musk and that the company was on track to meet most of the plan’s benchmarks. The lack of disclosure to shareholders made the compensation plan excessive, and the judge struck it down.
Tesla asks shareholders to reinstate Elon Musk’s salary and move to Texas
Following a court ruling that invalidated his compensation package, Musk moved to move Tesla’s headquarters from Delaware to Texas. (Photo by Michael M. Santiago/Getty Images/Getty Images)
Musk responded to the ruling by withdrawing from Tesla’s state of incorporation. Delaware to TexasThis is another item that will be presented to shareholders to vote at the general meeting.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 176.75 | -2.49 | -1.39% |
Tesla has a page on its website inviting shareholders to vote and outlining the company’s position on compensation packages.
The company wrote that Musk has earned shareholders a total return of about 1,100% since shareholders approved his compensation plan in 2018, and that “if he fails to achieve unprecedented growth targets for Tesla, his compensation will be zero, not a failure.”
Tesla CEO opposes EV tax breaks and tariffs on Chinese-made EVs
Tesla shareholders will also vote on whether to change the company’s state of incorporation from Delaware to Texas. (Photo by Smith Collection/Gado/Getty Images/Getty Images)
He added that Musk must hold onto any options he exercises for at least five years after they are exercised, giving him an incentive to pursue the acquisition. EV Manufacturer We will continue to grow in the future.
The board proposed reinstating Musk’s compensation package, which offers no salary or cash bonus but rewards in the form of stock options that would be granted if Tesla’s market capitalization grows by up to $650 billion over the 10 years after 2018. The company’s current market capitalization is about $571.6 billion, according to LSEG data.
Proxy advisory firm Glass Lewis urged Tesla shareholders to reject the extraordinary acquisition package, citing its “excessive size,” the impact of Musk’s stock option exercise and the concentration of ownership in the company.
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The company also noted that Musk’s “very time-consuming projects” have increased since the company acquired Twitter (now known as X), where he serves as chief technology officer and chairman. Musk also said: SpaceX CEO He is the founder of artificial intelligence startup xAI, as well as founder of Neuralink and The Boring Company.
