Tesla's Boardroom Dynamics Could Impact Its Stock Performance Amidst CEO Elon Musk's Record-Breaking $44bn Compensation Package

• Tesla shareholders have approved a $44 billion pay package for CEO Elon Musk.
• Tesla's stock has dropped 28% year-to-date and 55% from its 2021 all-time high.

Tesla Inc TSLA shareholders have recently approved an unprecedented $44 billion pay package for CEO Elon Musk. This meeting also addressed other significant corporate decisions beyond Musk’s compensation.

Notably, shareholders approved moving Tesla's legal domicile from Delaware to Texas. This move is not just logistical, it signals a strategic shift that could affect corporate governance and tax obligations, potentially reshaping the company’s operations.

The meeting also included active shareholder participation with several key proposals, such as shortening board terms and adjusting voting requirements.

These proposals indicate a push for more dynamic and responsive governance practices, despite facing opposition from the board, highlighting a critical dialogue between Tesla’s leadership and its investors.

Amid these boardroom battles, Tesla's financial performance presents a complicated picture. The company’s stock has faced significant pressure, dropping 28% year-to-date and plunging 55% from its 2021 peak.

Currently, the stock trades between key support and resistance levels at $138 and $198. The $198 level is just below the critical $200 level, a psychological area that could greatly impact investor behavior and stock momentum.

Surpassing the $200 mark could lead to a significant bullish trend, similar to the 1400% surge from January 2020 to November 2021. To confirm an upward trend, the stock needs to break through both $200 and $300. A rally past the all-time high of $414 would indicate strong momentum.

After the closing bell on Friday, June 14 the stock closed at $178.01, trading down by 2.48%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.