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Elon Musk Encourages Tesla Shareholders to Vote on Compensation with Special Incentive

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Elon Musk, the CEO of Tesla, is encouraging shareholders to vote on their shares with the incentive of winning a guided tour of the company’s Texas plant. The offer includes a tour of the Tesla Gigafactory in Austin, Texas, as well as the manufacturing lines for the Cybertruck and Model Y, guided by Musk and Tesla Chief Designer Franz von Holzhausen.The winner of the tour will also have a reserved seat at the Tesla annual stockholders’ meeting on June 13. Shareholders are eligible to vote if they were a stockholder of record or a beneficial owner as of April 15. Proof of voting must be submitted by midnight on June 7.

Musk’s $56 billion compensation plan, which was previously struck down by a Delaware judge in January, is being presented to shareholders for reinstatement at the annual meeting. The judge ruled that Tesla’s board did not adequately disclose their ties to Musk and that the plan’s excessive size resulted in it being voided. Musk responded to the ruling by pushing for Tesla to change its state of incorporation from Delaware to Texas, which is another item being presented to shareholders for a vote at the annual meeting.

Tesla’s website encourages shareholders to vote on the pay package, highlighting Musk’s achievements since the plan was approved in 2018, including a total shareholder return of nearly 1,100%. The package offers no salary or cash bonus, but rewards Musk with stock options based on Tesla’s market value rising to as much as $650 billion over 10 years. Currently, the company is valued at $571.6 billion, according to LSEG data.

Proxy advisory firm Glass Lewis has urged Tesla shareholders to reject the proposed pay package, citing its excessive size and the potential impact on the company’s ownership. Glass Lewis also mentioned Musk’s involvement in multiple time-consuming projects, such as serving as the chief technology officer and executive chairman of X (formerly Twitter) and CEO of SpaceX, in addition to his roles at other companies he founded, including Neuralink and The Boring Company.

It is important for Tesla shareholders to carefully consider the implications of reinstating Elon Musk’s pay package, as well as the proposal to change the state of incorporation from Delaware to Texas. The decisions made at the annual stockholders’ meeting will have significant implications for the future of the company and its leadership. By voting and participating in the process, shareholders have the opportunity to have a direct impact on the direction of Tesla and the decisions that will shape its future growth and success.

Overall, the push to reinstate Musk’s pay package and move Tesla’s state of incorporation to Texas are significant developments that will impact the company’s future trajectory. Shareholders have the opportunity to participate in these decisions and potentially win a guided tour of Tesla’s Texas plant, providing a unique opportunity to engage with the company’s operations and leadership. It is essential for shareholders to carefully consider the information provided and make informed decisions that align with their interests and the future vision of Tesla as a leading innovator in the electric vehicle industry.

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