Benzinga - by Shanthi Rexaline, Benzinga Editor.
Tesla, Inc.’s (NASDAQ:TSLA) upcoming annual shareholder meeting, scheduled for June 13, is crucial as it will decide the fate of CEO Elon Musk’s 2018 compensation package, which was nullified by a Delaware Chancery court in late January. On Saturday, the billionaire weighed on what is at stake at the annual meeting.
What Happened: A Tesla influencer and investor going by the X handle @Teslaconomics said in a post that Tesla can “march on forward to become the largest company in the world” contingent on the following conditions:
- Musk getting 25% voting power
- Tesla being incorporated in Texas
- Musk’s compensation package is approved
“Yes,” Musk said in reply, concurring with the view.
If Elon gets 25% voting power, Tesla is reincorporated in Texas, and compensation package is approved, then AI & Robotics stays within Tesla and the company can march on forward to become the largest company in the world pic.twitter.com/YRCFKeHENM— Teslaconomics (@Teslaconomics) May 18, 2024
Musk also warned that, if that were not the case, he would prefer to build products outside of Tesla. He also clarified that he wouldn’t be motivated with just stock ownership.
“Fidelity and other own similar stakes to me. Why don't they show up for work?” he asked.
Meanwhile, in the proxy statement filed with the SEC, Tesla has sought reapproval of Musk’s compensation package and the shifting of the state of incorporation from Delaware to Texas. Amid criticism over the CEO pay plan, the company has recently intensified efforts to secure shareholder backing for it.
As its core EV business suffers, Tesla has shifted its focus toward the robotaxi business, which rides on the back of the company’s self-driving software. The robotaxi business and the high-margin revenue stream from the sale of the FSD are seen as near-term life buoys that can lift the company out of the fundamental rut. The company plans to unveil the robotaxi on Aug. 8.
Tesla ended Friday’s session up 1.50% at $177.46, according to Benzinga Pro data.
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