Several Companies Under Elon Musk Billed Each Other Approximately $9 Million In Expenses, Raising Serious Questions About Corporate Governance

In a recent series of disclosures, Tesla Inc. TSLA offered a glimpse into the financial relationships between Elon Musk's various enterprises, revealing a complex web of transactions totaling $9.1 million.

These disclosures come as part of the preparation for Tesla's annual shareholder meeting in June. The regulatory filings detail payments between companies where Musk holds significant roles, including SpaceX, X (formerly Twitter), and The Boring Company.

Fortune reported that the exchanges notably include SpaceX paying Tesla $2.9 million in 2023 and through February 2024, and Tesla, in turn, paying an unnamed security company owned by Musk $2.9 million for his protection.

Additionally, Tesla invested in advertising on X, with the expenses amounting to $280,000. Tesla also paid the Boring Company $1.2 million.

The series of transactions highlights the interconnected operations of Musk's businesses and raises concerns about corporate governance practices.

Also Read: Is Elon Musk Becoming More Like Donald Trump? One Report Suggests So

Amid these revelations, Tesla faces challenges in sustaining investor confidence as it heads into its first-quarter earnings announcement, with a 40% year-to-date drop in stock price.

The company is seeking to rally support for a massive $45 billion stock option package for Musk as Tesla's valuation has plummeted by $700 billion. However, investor sentiment appears to be wavering.

Electrek reported that Tesla's largest retail investor, Leo Koguan, expressed his intention to vote against Musk's compensation package and withhold support for board members up for reelection. They include Musk's brother Kimbal Musk and friend James Murdock. 

Koguan’s discontent stems from concerns over Tesla's governance, likening it more to a family-owned enterprise than a public company.

As Tesla approaches its June shareholder meeting, the company and Musk face the dual challenge of navigating investor scrutiny and revitalizing Tesla's market performance, underscoring the broader debates around corporate governance and leadership accountability in Musk's empire.

Now Read: Elon Musk Voices Opposition To Potential TikTok Ban: 'It Is Not What America Stands For'

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.