Will Musk's salary package be a loss for TSLA?
Next time $Tesla(TSLA.US$ The general shareholders' meeting is thought to be a loss for the company. What is at issue is whether shareholders think Musk should receive a $56 billion salary package (initially agreed in 2018 and scrapped by a Delaware judge earlier this year). ISS and Glass Lewis, which are power of attorney advisory firms, have recommended that they oppose approving this package, and many institutional investors are following suit. Nevertheless, the majority of those surveyed (56%) said they expected the proposal to be approved.
However, whichever way this vote turns, I anticipate that the results will be negative for TSLA. The result is one of two:
A) Mask's salary is approved
If this salary package is approved, Mr. Musk's shareholding ratio will approach 25%, and other shareholders will decrease by 10%.
For many shareholders, this will be the final straw. Shareholders who vote against will see this as Mr. Musk is trying to extract as much value as possible from the dying company. Especially after this year's sales slowdown (Hearts sold Tesla vehicles and admits that this move was a mistake) and the dismissal of the entire Supercharger team.
B) Mask's salary is denied
If the salary package is denied, I think it would mark the beginning of the end for Tesla. Musk has already said that if they don't get 56 billion dollars, they will shift their focus to other companies.
He is threatening to develop AI at another company, and he has already admitted that he diverted Nvidia GPUs from Tesla to XAI and Twitter.
Musk is Tesla's main driving force, and without his presence and constant publicity, his ardent supporters will begin reviewing their Tesla stock holdings, which I think will lead to significant sales.
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