Tesla will ask its shareholders in June to ratify a multi-billion-dollar pay package for CEO Elon Musk that was squashed by a US court.
South Africa-born billionaire Elon Musk arrives at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024. Image: ETIENNE LAURENT / AFPSouth Africa-born billionaire Elon Musk arrives at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024.
“We believed in it in 2018, as we asked Elon to pursue remarkable goals to grow the company. You, as stockholders, also believed in it in 2018 when you overwhelmingly approved it.”, ruling that the process leading to the astronomically valuable package was “deeply flawed” given Musk’s deep ties to key board members who negotiated the package on behalf of Tesla.
The proposals come amid a difficult stretch for Tesla, whose shares have fallen 37 percent so far in 2024 compared with about a 6.5 percent gain in the S&P 500.That move comes about 10 days after Tesla reported a drop in first-quarter auto deliveries in a decline seen as reflective of rising competition among electric vehicle producers and slowing demand growth in some markets.
Ives said South Africa-born Elon Musk needs to address market speculation that the company is shelving plans for a mass-marketed EV at a lower price point. The much-anticipated project has often been referred to as “Model 2.” “We believe no Model 2 rollout in the next 18 months would be a disaster gamble that would likely change the growth story of Tesla the next few years,” Ives said.
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