Tesla Tempts Shareholders With Giga Texas Tour For Voting On CEO Elon Musk's Rescinded $56B Pay Package

EV giant Tesla Inc TSLA is offering tours of its gigafactory in Texas to select shareholders who vote on CEO Elon Musk‘s rescinded 2018 pay package.

What Happened: To enter the draw, shareholders have to vote their shares and submit proof of share ownership and voting. 15 of the entrants will win the chance to tour Giga Texas with both Musk and Senior Design Executive Franz von Holzhausen a day before the annual shareholder meeting scheduled for June 13.

The winners will also have a reserved seat at the meeting the following day when the results of the vote will be announced.

Entrants will only have to submit proof of voting and not whether they voted for or against the proposals put forth by the board. The selection will also be independent of how many shares the shareholder holds, the company said.

Tesla added that participants were eligible only if they were a stockholder of record or a beneficial owner at the close of business on April 15 this year.

“Don't delay, vote today!” it further urged.

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Why It Matters: Shareholders will vote on moving Tesla's state of incorporation from Delaware to Texas and Musk's rescinded 2018 pay package ahead of the upcoming meeting.

The pay package, worth $56 billion at the time of award, was rescinded by a Delaware court earlier this year after deeming it an “unfathomable sum.” Tesla's board is trying to have it reinstated by a shareholder vote yet again in June, including by investing in advertisements to the effect.

In a note earlier this month, Morgan Stanley analyst Adam Jonas said that the upcoming meeting will drive material volatility in the stock and determine the company’s long-term strategic direction.

Price Action: Tesla shares closed down 1.4% on Tuesday at $176.75 and dropped 0.3% after hours. The stock is down by nearly 29% year-to-date, according to data from Benzinga Pro.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read More: SpaceX CEO Elon Musk Says Gigantic Starship To Get Even Taller With 3x More Thrust Than Saturn V

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