Tesla Shareholders to Vote on Paying Elon Musk and More

Core Viewpoint - Tesla shareholders are set to vote on two significant proposals: relocating the company's incorporation to Texas and ratifying CEO Elon Musk's performance-based compensation package, which has faced challenges in Delaware [1][3]. Group 1: Shareholder Proposals - The board of directors is seeking shareholder approval to incorporate Tesla in Texas, aiming to establish a more favorable legal environment for the company [3]. - The proposal to ratify Musk's performance award is crucial as he has not received any salary in six years due to previous court rulings in Delaware [1][2]. Group 2: Financial Performance - Tesla's revenue surged from $11.8 billion to $96.8 billion, with a profit of $15 billion, contributing to a market cap of nearly $790 billion at the end of 2023, although it has since decreased to $567.2 billion [2]. - The stock price has seen a decline of nearly 30% year-to-date, influenced by layoffs and cost-cutting measures, including price reductions for electric vehicles [4]. Group 3: Future Prospects - Musk emphasizes the importance of autonomous driving technology for Tesla's future, with plans for mass production of Class 8 semi-trucks by the end of next year [5]. - Tesla's stock has gained over 900% over the past five years, despite a slow start in 2024, with analysts divided on the stock's future performance [7]. Group 4: Leadership and Shareholder Actions - Tesla Chair Robyn Denholm has been selling her shares, amounting to approximately $17.3 million, while still holding a significant number of shares from options awards [6]. - Some major investors, like Leo KoGuan, have expressed opposition to the proposals, urging a "no" vote [1].