Reported 7 months ago
On June 13, 2024, Tesla CEO Elon Musk announced in advance that the company’s shareholders had passed two resolutions with a 'significant majority,' including Musk’s compensation plan and headquarters relocation to Texas, causing Tesla's stock price to open on the 13th with a gap up and a surge of over 6%. Even though the voting was not yet closed, Musk expressed gratitude for the support. Musk's compensation plan, initially approved in 2018 but later rejected by a Delaware judge in January due to perceived flaws, granting Musk about 303 million stock options, remains a focal point. The relocation to Texas requires majority shareholder support, with the board actively convincing investors by labeling Texas as Tesla's 'hometown'. Musk criticized Delaware's court system when the plan was first rejected, and has since relocated SpaceX to Texas as well, aiming for a Mars trip funded by the stock options. The ultimate outcome will depend on the last-minute votes from retail and institutional investors.
Source: YAHOO