In 2018, Tesla shareholders approved a record-breaking pay package for Elon Musk. Six years later, they will decide whether to endorse a similar $50 billion deal at this week's annual meeting.
The previous package, backed by 73% of voters, granted Musk rights to 300 million shares, roughly a 10% stake in Tesla, contingent on achieving ambitious goals such as making Tesla a $650 billion company. However, a Delaware judge recently voided the deal, citing it as "unfair" and the board's approval process as "deeply flawed."
Instead of conceding, Tesla is resubmitting the deal for a new vote and seeking to reincorporate outside Delaware, labeling the judge's decision as "fundamentally unfair."
Tesla argues that the compensation is crucial to keeping Musk engaged. "We must stand by our deal," stated board chair Robyn Denholm in a letter to shareholders.
While Musk's significance to Tesla remains unquestioned, this vote comes amid challenging times. Tesla's stock has fallen from its highs, and its dominance in the electric car market is under threat. Additionally, Musk's controversial political statements and focus on other ventures, including social media platform X (formerly Twitter), have drawn criticism for potentially diverting his attention from Tesla.
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