Editor’s Note: The headline of this article has been updated to ensure accuracy.
Elon Musk, the CEO of Tesla Inc. TSLA, has announced that the company’s shareholder resolutions are passing with significant margins.
What Happened: Musk shared the news on X on Wednesday, along with screenshots of the shareholder vote graph. The resolutions are part of the highly anticipated 2024 Tesla Inc shareholders meeting, which is scheduled for Thursday, Jun. 13. The meeting will include a crucial vote on a new compensation plan for Musk.
Musk wrote, “Both Tesla shareholder resolutions are currently passing by wide margins!” he also expressed gratitude for the significant support received.
The meeting will be a limited in-person event for shareholders at the Tesla gigafactory in Texas. A random drawing was conducted to determine which shareholders could attend. The event will also be livestreamed on YouTube starting at 4:30 p.m. ET on Jun. 13.
See Also: ‘The City Is In A Doom Spiral’ Says Elon Musk But Won’t Move Twitter Out Of San Francisco
Why It Matters: The resolutions include several proposals that shareholders were asked to vote on, such as changing Tesla’s corporate home to Texas and confirming the 2018 CEO pay package for Musk, which was voided by a judge earlier this year. The new plan for shareholders to vote on includes requirements that Musk hold the shares he receives from exercising options for five years.
The board of directors recommended a vote for the plan and stated that shareholders overwhelmingly approved the same plan back in 2018. Musk, who owns 13% of Tesla, is seeking to increase his stake to 25% with the possibility of taking his AI initiatives to other companies outside of Tesla.
The annual shareholder meeting is a crucial event for Tesla, with the fate of Musk’s compensation plan hanging in the balance. A rejection of the plan could potentially lead to Musk scaling back his involvement with the company, a prospect that has raised concerns among investors and industry experts.
With Musk’s ownership of 13% of Tesla and his aspiration to increase it to 25%, shareholders play a crucial role in supporting Tesla’s future growth and ensuring Musk’s continued focus on innovation within the company.
Despite this, the resolutions are on track to pass, with Musk’s inner circle lobbying hard for his pay plan ahead of the crucial board meeting. This news comes amidst a series of developments that have been shaping Tesla’s future, including a price target of $2,600 set by Ark Invest for Tesla’s shares.
Price Action: Tesla Inc.’s stock closed at $177.29 on Wednesday, up 3.88% for the day. In after-hours trading, the stock rose to $178.10, gaining 0.46%. However, year to date, Tesla’s stock has seen a significant decline of 28.63%, according to the data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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