Some Tesla shareholders say diverting Nvidia chips is further proof that Elon Musk doesn't deserve a multibillion-dollar pay package

Core Viewpoint - Elon Musk's decision to redirect a shipment of Nvidia chips away from Tesla has raised concerns among institutional shareholders regarding his compensation package and commitment to the company [1][2][5]. Group 1: Shareholder Concerns - A group of eight Tesla shareholders is urging other investors to vote against Musk's multibillion-dollar compensation package, citing his recent actions as evidence of mismanagement [1][2]. - The shareholders plan to vote on June 13 regarding the reinstatement of Musk's compensation deal, which was previously deemed "deeply flawed" by a Delaware court [2]. - The diversion of a $500 million shipment of Nvidia chips, essential for AI technology, to Musk's social media platform X has intensified scrutiny over his priorities [2][3]. Group 2: Resource Allocation Issues - Musk stated that Tesla had no place to utilize the Nvidia chips, which led to their diversion, raising questions about operational management and resource allocation within the company [3][4]. - Shareholders have expressed concerns that Musk is reallocating Tesla's resources to benefit his other ventures, indicating a lack of oversight from the board [3][5]. Group 3: Financial Implications - The eight shareholders collectively hold over 4.9 million shares of Tesla, valued at more than $878 million, indicating significant financial stakes in the company [6]. - The California Public Employees' Retirement System (CalPERS), owning approximately 9.5 million shares, has also signaled its intention to vote against Musk's pay package, citing a mismatch between compensation and company performance [6][7].