Benzinga - by Shanthi Rexaline, Benzinga Editor.
Tesla, Inc. (NASDAQ:TSLA) shares rallied strongly on Monday after the electric-vehicle giant’s CEO Elon Musk made a surprise visit to China over the weekend and met with Premier Li Qiang and other key officials. The whirlwind visit was followed by a flurry of announcements that catalyzed the upward move.
A Tesla bull-turned-skeptic, however, suggested that there could be more than meets the eye.
What Happened: “Anyone else feel it's bullish that Elon is working so hard for $TSLA shareholders to ensure that he gets his 2018 comp plan approved at the 2024 SH meeting?” said Future Fund’s Gary Black in a post on X, formerly Twitter.
The co-founder and Managing Partner at Future Fund said he always believed Musk would receive overwhelming approval for his pay package at the 2024 annual shareholder meeting. About 73% of outside votes were cast in favor of his compensation plan in 2018, he said.
“But positive 1Q earnings call and now this China deal with $BIDU surely increases odds of approval. Only @elonmusk could get this China deal done so quickly,” he said.
The annual shareholders is scheduled for June.
Why It’s Important: Tesla sprang a surprise in its proxy statement filed earlier this month by calling for its shareholders to vote once again on Musk's 2018 compensation plan. The plan was previously rescinded by a Delaware Chancery Court.
While Tesla shares were languishing at that time, they have come back up strongly following the first-quarter earnings announcement and Musk’s China visit. A legal expert previously called out Tesla’s action as unfair, equating it as a payment for work he has already performed, which means that the company doesn't get any benefit from it.
In premarket trading on Tuesday, Tesla fell over 2% to $190.15, after closing 15% higher in the last session, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next: Jim Cramer Says Tesla Stock Will ‘Keep Running Until All Shorts Are Crushed,’ Praises Elon Musk’s China FSD Deal As ‘Perfect Example Of Redefining Narrative’
Photo generated using Midjourney
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.