A cult or a corporation? Tesla shareholders will decide with vote on Elon Musk's $56B payday

[LetMyPeopleVote]

This lawsuit has been fun to follow. Musk's compensation package was ruled invalid due to a failure to follow Delaware law and get the proper approval of disinterested shareholders and directors. Now Musk and company are asking Tesla stockholders to re-approve the same compensation plan in order to keep Musk happy. This stockholder meeting will be a litmus test to see if Tesla is a real corporation or a cult.

In addition, Musk is trying to move Tesla to Texas from Delaware. Musk got his butt kicked first in the Twitter litigation and now in the Tesla compensation lawsuit. Musk has already moved Twitter/X to Nevada and now wants to move Telsa to Texas from Delaware. This will be fun to watch.

Link to tweet

https://www.houstonchronicle.com/business/columnists/tomlinson/article/elon-musk-pay-tesla-shareholder-vote-19412462.php

Shareholders will soon reveal whether Tesla is a corporation or a cult by voting on whether to make Elon Musk the highest-paid part-time CEO in history despite the stock price collapsing 40%, the company laying off 14,000 workers and a judge calling his hand-picked board’s decision-making deeply flawed.

Musk and Tesla’s directors are spending millions to convince shareholders to give up $56 billion after the company missed sales targets and failed to launch the new Model 2 on time, if at all. Analysts at Houston investment bank TPH Energy Research expect the stock to drop another 17% before bottoming out.

Tesla’s biggest retail shareholder, Leo Koguan, told the energy transition website Electrek that he would vote against the deal in June. “Tesla is a family business masquerading as a public company,” he explained......

Yes, let’s compare Tesla to General Motors. Tesla is valued at about $460 billion with an extraordinary price-to-earnings ratio of 34, which means investors think it is worth $34 for every dollar the company earns.

General Motors is worth $48.82 billion and has a standard price-to-earnings ratio 5.78. The stock yields a dividend of 1.14%, while Tesla yields nothing. GM generated $171.84 billion in revenue in 2023, compared to Tesla’s $96.8 billion.

I am amused to see Musk threaten Tesla which could be used if this case goes back to Delaware.

“I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned,” he posted on X. “Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand that Tesla is not one startup, but a dozen. Simply look at the delta between what Tesla does and GM.”

I hope that Musk loses both votes.

[gopiscrap]

1. it's a cult

[tanyev]

2. YOU don't build anything, Elon.

You buy companies that have built things and take all the credit. And it’s starting to look like your involvement with these companies is breaking them.

[DFW]

3. Compensation plan or cash?

If it’s some paper scheme he will to borrow against, and isn’t worth what he borrowed, he will be in court for years, but if he truly ends up with $30 billion, post tax (and we all know he’ll never pay anywhere near that much in taxes), one just HAS to ask, what do you DO with $30 billion? You can only sleep in one room at a time, no matter how big your palace is. You can only fly in one airplane at a time, no matter how big your fleet is.

If it were me, I think I’d build the biggest research center in the world, get the best minds together and try to solve fusion, cure cancer, find the healthiest foods and invent the least polluting forms of energy. It’s not enough to cure poverty nationwide, but it might go a long way toward eliminating some of its causes.

[usedtobedemgurl]

4. I own stock.

Here is one vote against him.