‘Don’t delay, vote today’: Elon Musk entices investors with factory tours to garner support for pay package

NEW DELHI: Elon Musk, in an attempt to secure votes for his $56 billion compensation package, is offering factory tours to 15 Tesla shareholders next month. This move comes after a court rejected the pay deal, and the upcoming vote is viewed as a test of Musk’s leadership amidst concerns about his divided attention and controversial remarks affecting Tesla’s reputation and sales.
Tesla’s board maintains that the compensation is essential to ensure Musk prioritises the company over his other ventures.The company is making a concerted effort to garner support for the pay package, which was originally approved in 2018 but later struck down by a judge who found that the directors involved in the negotiation appeared to be influenced by Musk.
“Don’t delay, vote today!” Tesla said on Tuesday.
The factory tour, led by Musk and other Tesla executives, will showcase the production lines for Cybertrucks and Model Ys in Texas on June 12, the day before the annual shareholders’ meeting. Nell Minow, vice chair of ValueEdge Advisors, sees this as a “last-ditch effort to try to charm retail investors.”
Glass Lewis, a proxy advisory firm, has advised Tesla shareholders to vote against the pay package, citing Musk’s “slate of extraordinarily time-consuming projects.”
Kristin Hull, founder of Tesla investor Nia Impact Capital, also voted against the package, emphasizing that Musk’s focus is not solely on Tesla. “His focus is clearly not just on Tesla,” Hull said.
Musk is also involved in various other ventures, including SpaceX, Twitter, and the recently launched AI company xAI.
He owns around 13% of Tesla and has threatened to develop AI products outside the company if he doesn’t achieve 25% voting power, which would require some of the stock options in the compensation deal.
Building AI projects outside Tesla could negatively impact the company’s valuation, which heavily relies on its AI capabilities in self-driving technology. Musk himself has said that without full self-driving, Tesla would be “worth basically zero.”


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