Takes from 3 Tesla shareholders: Unenthusiastic yes to unequivocal no as Musk awaits vote on his pay
What percentage of Tesla stock is owned by retail investors, and what has Elon Musk claimed about their support for his pay package?
Retail investors currently own around 40% of Tesla stock. Elon Musk has claimed that the majority of retail shareholders who have voted support his pay package. In a post on X, formerly known as Twitter, Musk stated that "roughly 90% of retail shareholders who have voted" have voted in favor of the package, adding that "public sentiment is unequivocally supportive."
What were the main reasons given by Ibrahim AlHusseini for voting in favor of reinstating Elon Musk's pay package?
Ibrahim AlHusseini, an early Tesla investor, stated that he was voting in favor of reinstating Elon Musk's $56 billion pay package, but was not enthusiastic about it. His main reasons for supporting the pay package were:
- Principle: AlHusseini believed that Tesla should honor the 2018 compensation package that was originally agreed upon, as Musk had met the milestones set by the board.
- Wealth creation: He acknowledged that a lot of wealth had been created for shareholders under Musk's leadership and that the compensation was set by the board.
Despite these reasons, AlHusseini mentioned that he thinks most of his peers will vote against the pay package in this instance.
How does the current market valuation of the pay package compare to its original value, and what factors have contributed to this change?
The current market valuation of Elon Musk's pay package has decreased from its original value. When the pay package was first introduced in 2018, it was valued at up to $56 billion. However, due to a decline in Tesla's market capitalization, the value of the package has now fallen to roughly $46 billion.
Several factors have contributed to this change in valuation. One significant factor is the overall decline in the stock market, which has affected many companies, including Tesla. Additionally, Tesla has faced challenges such as production delays, quality control issues, and increased competition in the electric vehicle market, which have impacted its financial performance and, in turn, its market capitalization.
Moreover, Musk's attention being divided among his various ventures, such as SpaceX, Neuralink, and the Boring Company, has raised concerns among some investors about his ability to focus on Tesla and effectively manage the company. This has also influenced the market's perception of the value of his pay package.
Overall, the change in the market valuation of Musk's pay package reflects the evolving sentiment towards Tesla and its prospects in the market, as well as the broader economic and industry-specific challenges the company has faced in recent years.