Tesla shareholders recently voted in favor of affirming Elon Musk’s multibillion-dollar pay package, with 72 percent of voting shares supporting the proposal. Concerns had arisen about Musk’s commitment to Tesla after a judge voided his pay package in Delaware. The compensation plan requires Musk to hold onto the shares for at least five years, with its value currently estimated at around $48 billion.
Following the vote, Musk reassured shareholders that he was committed to Tesla, emphasizing that the pay package was not cash and he had no intention of leaving the company. Tesla’s stock fell about 2 percent in early trading after the vote, but some analysts revised their reports on the company’s future prospects. Vanguard, the second-largest shareholder in Tesla after Musk, voted in favor of the pay award after expressing concerns about its size in 2018.
The reconfirmation of the pay award was seen as a vote of confidence in Musk by analysts, who believed it could help convince the Delaware court to reconsider its ruling. Musk aims to increase his stake in Tesla to 20.5 percent, up from about 13 percent, with a target of 25 percent in mind. Despite Tesla’s stock being down more than 20 percent this year, the company’s valuation remains high at nearly $600 billion.
At the shareholder meeting, Musk expressed optimism about Tesla’s self-driving technology and future products, including a fleet of robotaxis and a humanoid robot called Optimus. Market analysts have mixed views on Tesla’s future, with some predicting a decline in stock value while others anticipate significant growth. The outcome of the pay vote was seen as a positive moment for Tesla by some analysts, aligning Musk’s fate with that of the company.
Overall, Tesla shareholders’ approval of Musk’s pay package signals confidence in his leadership and future direction for the company. Despite ongoing challenges and fluctuations in Tesla’s stock value, the vote reinforces Musk’s commitment to Tesla and his vision for its growth. The company’s innovative technologies and ambitious plans for expansion continue to attract both support and skepticism from market analysts and investors.
