Tesla wants shareholders to reinstate $56 billion pay package for Musk rejected by Delaware judge

Core Viewpoint - Tesla is seeking shareholder approval to reinstate a $56 billion compensation package for CEO Elon Musk that was previously rejected by a Delaware judge, and to relocate the company's corporate home from Delaware to Texas [1][2][3] Group 1: Compensation Package - The compensation package for Musk, potentially worth about $55.8 billion over 10 years starting in 2018, was ruled not entitled to him by Chancellor Kathaleen St. Jude McCormick [2] - Tesla's board argues that Musk has met all operational and stock value targets outlined in the 2018 pay package, and that the court's ruling is unfair to shareholders who approved it [3] - The board's decision to seek reinstatement of the pay package followed a report from a special committee member [6] Group 2: Corporate Relocation - Musk has expressed intentions to move Tesla's corporate listing to Texas, where he has already relocated the company's headquarters [2] - This move follows a similar action with Musk's other company, Neuralink, which was relocated from Delaware to Nevada shortly after the court ruling [2] Group 3: Company Performance and Market Conditions - Tesla reported record deliveries of over 1.8 million electric vehicles in 2023, but the company's stock value has significantly declined this year due to softening sales [4] - The company delivered 386,810 vehicles from January to March, nearly 9% fewer than the same period last year, contributing to a loss of more than one-third of its stock value this year [5] - Tesla has implemented price cuts of up to $20,000 on some models, which have negatively impacted profit margins and led to a decrease in used electric vehicle values [5] Group 4: Workforce Adjustments - Tesla is planning to lay off about 10% of its workforce, approximately 14,000 employees, as part of cost-cutting measures following disappointing first-quarter sales [4][5]