Is Elon Musk Working So Hard To Ensure His Pay Package Is Approved By Shareholders In June? Here's What A Fund Manager Says

Tesla, Inc. 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.

See Also: Everything You Need To Know About Tesla Stock

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 The plan was previously rescinded by a Delaware Chancery Court.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