Gary Black: Elon Musk's Pay Package Likely Overwhelmingly Approved

$Tesla(TSLA.US)$ $BYD COMPANY(01211.HK)$ $NIO Inc(NIO.US)$ $XPeng(XPEV.US)$ The article reported that Future Fund Managing Partner Gary Black believes Tesla CEO Elon Musk‘s 2018 compensation package will likely be overwhelmingly approved by shareholders in the upcoming annual meeting, rendering a “huge positive” to the company. Black is of the opinion that the annual shareholder meeting (held on June 13, 2024 at 4:30 pm EST) will be the next “major catalyst” for the company.

My Take: Gary Black (GB) is no longer a Tesla Bull. According to Benzinga, based on Q4 SEC filing dated in Feb. 14, GB's The Future Fund slashed its stake in Tesla by 1% to 104,450 shares. Since then he started (in X.com) to condemn “disillusioned” Tesla's enthusiasts who labeled him a “short-term speculative trader” for trimming his position in the EV company. In the article, GB also said negatively that Elon Musk may resign if the package is voted down - the comment is taken as spreading FUD against the company. Personally I think the voting of the compensation package is only one of the many proposals; we should not read too much into the result. Tesla's fundamentals have not changed and EM is still the CEO, hence the impact on the share price is only short live.