EV giant Tesla Inc (NASDAQ:TSLA) on Monday posted a video on social media platform X requesting shareholders to vote again for Elon Musk's 2018 pay package without the CEO requesting it.
What Happened: Tesla on Monday posted a video highlighting its various achievements and developments including its humanoid robot Optimus, stainless steel Cybertruck, energy storage product Megapack, and full self-driving driving assistance software aimed at enabling vehicle autonomy in due time.
"Tesla stockholders, YOU have the ability to enhance the future of the company. For the past 6 years, under Elon Musk's leadership, you've seen the value of your investment increase by about 1,100%. The present and future value creation that Tesla is poised to deliver for you all is at risk. We need your vote. Protect Tesla," the video urged shareholders at the end.
Musk thanked the team for the video and noted that they made it out of choice, without him asking for it.
"The Tesla team put this together of their own volition (I did not ask for it). Thanks!," Musk wrote.
The Tesla team put this together of their own volition (I did not ask for it). Thanks!
— Elon Musk (@elonmusk) May 20, 2024
Why It Matters: For the shareholder meeting scheduled for June 13, Tesla shareholders will vote again on Musk's 2018 pay package which was rescinded by a Delaware court earlier this year after deeming it an "unfathomable sum."
The package was worth $56 billion at the time of award and a majority of stockholders voted for it then. The board is attempting to have it reinstated with the new vote.
The shareholders will also deliver a verdict on shifting Tesla's state of incorporation from Delaware to Texas where the company is already headquartered.
Morgan Stanley analyst Adam Jonas sees the upcoming shareholder vote driving material volatility in the stock and determining the company's long-term strategic direction.
Future Fund Managing Partner Gary Black, too, believes the package will likely be overwhelmingly approved by shareholders in the upcoming annual meeting, rendering a "huge positive" to the company.
Price Action: Tesla shares closed down 1.4% on Monday at $174.95. The stock is down nearly 30% year-to-date, as per data from Benzinga Pro.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read More: Elon Musk Hopeful Of SpaceX Launching Over 90% Of Earth's Payload To Orbit In 2024: 'Nothing Stopping Competition From Copying Us'
Photo via Shutterstock