Tesla shareholders reappointed Musk as its CEO during a vote on ThursdayThe $44.9 billion pay plan was turned down by a Delaware judge earlier this year.
It is not known how many votes were cast in favour of the proposal, however, even if there is a positive outcome, this does not mean that Musk will soon be able to receive all stocks as part of his salary since Tesla’s demand for compensation is expected to end up in the Delaware Chancery Court for several months. .
In January, Chancellor Catherine St. Jude McCormick made the ruling in a lawsuit filed by investors. According to the decision, at the time they approved it in 2018, Musk controlled Tesla’s board of directors and did not provide information about this decision to the shareholders who had given their consent exactly one year ago.
The company asked for the approval of its shareholders though it claimed that it would appeal against it at its last annual general meeting held in Austin Texas.
Nowadays Tesla stakeholders are voting on whether or not Elon Musk should regain his previous huge payment package after a Delaware ruling rejected it.
On Thursday, Tesla shares went up almost 3% to $182.47 per share following a regulatory filing from the company that showed investors were voting on approving Musk’s remuneration worth approximately $44.9 billion.However,the company has fallen by around 25% since the start of the year compared with its level at which Tesla shares have dropped similarly.
On late Wednesday evening, a post authored by Musk was shared on social media platform Legal residence changed from Delaware to Texas according to filing with US Securities and Exchange Commission (SEC) submitted by Tesla last night.
In April’s most recent regulatory filing however, Tesla disclosed that land value had dwindled to $44.9 billion.As we just noted above,Tesla shares have fallen about 25% since the beginning of this year while price may have been falling throughout this period as well.
Legal experts have advised Tesla not to share the voting numbers during the process of voting, which could account for the company’s filing with the SEC because it is investigating this matter.
Tesla shareholders will also be able to vote at its annual shareholder meeting in Austin, Texas on Thursday afternoons both online and in person where they can change their previous votes.
“Whenever you say we are winning, it encourages others to join you and discourages those who were opposed,” explained Charles Elson, a retired University of Delaware professor and creator of the Center for Corporate Governance. People quit.” It would be “highly unusual” for a business to release its proxy vote totals prior to completion of voting.
Elon Musk’s social media activity has gotten him in trouble with the US Securities and Exchange Commission (SEC) before. Both Tesla and Musk were fined after he tweeted about taking Tesla private before he had bought Twitter.
Therefore, his pay package approval practically guarantees that Musk will remain at his electric vehicle industry-leading automaker company Tesla that is now shifting gears towards AI+ robotics like autonomous vehicles as per Musk who said that this is what the future holds for Tesla.
If approved by shareholders, however, it all but guarantees that Musk will stay at this once-fledging global giant of an EV maker moving into AI and robotics more broadly including self-driving cars-which is Elon’s view of what Tesla should become.
In case board members decline to pay him, the CEO might actually put into effect his threat of undertaking artificial intelligence research at one of his other companies or even leave Tesla.
Nevertheless, there are still doubts with shareholders’ approval. If it fails, Musk would take away the resolution of AI and Robotics product development from Tesla. He now owns roughly 13% of Tesla’s shares but not 25% of Tesla’s shares. Recently Elon Musk’s xAI received $6bn in funding to support AI development.
