Risks to Tesla if the Shareholder Votes on Thursday Fails

by

Warren Redlich is a long time Tesla uber bull but he has fears that Elon Musk will leave Tesla if the 2018 CEO compensation package is not re-approved. The 2018 pay package was approved by over 70% of shareholders in 2018 and then all terms were met where the $2B+ volue of the award increased to $56 billion. The increase was due to Tesla share price and profits increasing by ten times. A Delaware judge rescinded the CEO compensation package in 2024 based on a lawsuit by a shareholder with 9 shares.

Here is what is known about the likely vote to be revealed June 13, 2024. The CEO compensation vote should pass but there is a risk that it does not. It is not known for certain how some institutions will vote.

Warren and Brian Wang discuss what happens if the CEO compensation is not re-approved.

Elon Musk has revealed that so far, ~90% of $TSLA retail shareholders who have voted have voted in favor of reapproving his 2018 compensation package and the Texas redomestication. Retail shareholders own roughly ~45% of all Tesla shares.

747 Million Shares Voted Yes (# is only 90% of the retail voting Yes)

Excluding @elonmusk shares, Tesla need only 20% i.e 🚨 231 Million from Institutions

Confirmed Alliance (54.7 Million 👇)
✅ Ron Barron Funds: 25 Million Shares
✅ ARK: 7.1 Million
✅ Morgan Stanley: 22.6 Million

New Alliance (Whom Elon started following) (177 Million 👇)
✅ JP Morgan: 15.5 Million
✅ BlackRock: 188.3 Million
✅ Some Others listed below

Voted YES for Texas & NO for Package
⚠️ Norges Investment: 31 Million

Leo Koguan voted NO. : 27.7 Million

14 thoughts on “Risks to Tesla if the Shareholder Votes on Thursday Fails”

  1. Unbelievable if you are a major shareholder of a company youself built, have slept in for 3 years, have reached an agreement with fellow others you get your bonus denied, he does better things with it than 99.99% of the planet. Its his company, his money. Damn lefties.

  2. Insanity.

    Even if his compensation package was reduced to one tenth of what it is, it would still be the largest compensation package ever in human history.

    Elon is not a brilliant manager of his money. He claims to oppose censorship, yet he paid the very people who did the censoring at Twitter one of the largest stock payments ever. Twitter, by any sane person’s evaluation, was barely worth one billion dollars, yet he moronically paid forty times that! Elon is a spendthrift with his money, wasting it foolishly. He sold Tesla shares to purchase Twitter shares… INSANITY!

    Elon is not a great manager of people. He fired good employees of the Tesla Charging network because he “wanted to make a point” about staff reductions. Good managers plan ahead and keep good employees in bad times… this is not a bad time for EV manufacturers.

  3. Elons foray into Xitter, Xweeting, hanging with right wing and conspiracy luminaries alienates a substantial part of Tesla’s customer base. At least he is not taking shots at Xi and the CCP because they would nationalize Tesla’s China holdings.

    • He obviously hasn’t alienated much of Telsa’s stockholder base. And I bet the same is true of the customer base.

      Only a tiny but noisy fraction of the public actually care about those side issues. They care if the product works, if the company is profitable.

      • True. The tiny, noisy fraction sucks all of the oxygen out of the room and is only concerned about advancing their unpopular policies. Which, apparently, Elon Musk is getting in the way of. Therefore he must be made to pay.

      • Several recent articles in the past few months, along with surveying, show which consumer demographic block is now no longer interested in one of his products, refutes that. Yes, sales matter, and those are down considerably, and accordingly.

        • Negative articles about Tesla? Are their any other kind of articles about Tesla? Tesla is the Goat of MSM punching bags. When you refuse to pay the advertisers, they have no incentive to put on the kid gloves when writing about you. They have gleefully predicted Tesla’s doom for the better part of a decade now.

      • Twitter is actually worth browsing a couple times a week since they stopped banning everybody with a questioning attitude or humor (e.g. Babylon bee). I’ll likely never own a Tesla, generally believe everyone in power or money has sold their souls, and agree that X was not a wise BUSINESS decision, but I applaud Musk for his token resistance to Tammany Hall.

    • The only people he has offended to the point of rejection are the fringe left.

      Interestingly, only the fringe left now classifies Elon as a “right wing conspiracist luminary”

      I’m not surprised to see such correlations any more.

      • I’m a counter example. I’m far from fringe left, but what he’s said about Ukraine and Russia, and some of the stuff he’s retweeted, make me not want to own his products.

      • It’s highly unlikely the imaginary group you termed ‘fringe left’ has been the consumer base supporting Tesla all these years, and have suddenly jumped ship, looking at recent sales results and stock performance. It would be more accurate to state a good percentage of the general population is tired of his crap, and is voting with their wallet, right? Again, looking at recent sales, overflowing stock on hand, etc.

        • Or maybe the fad-followers and HODL investors are seeing the reality described by Toyota chairman and former company CEO Akio Toyoda, who expects the electric vehicle segment to reach a maximum market share of just 30%, regardless of what the automotive industry does to spur growth.

          There are a lot of over-valued tech stocks out there; TSLA is one of them. Bear market adjustment may be coming.

Comments are closed.