A vehicle moving on the road. - Tesla stockholders grant Musk additional significant amount of shares
In a recent annual meeting, Tesla shareholders approved a hefty stock package for their CEO, Elon Musk, valued at around several billion dollars. Previously, this same compensation plan was invalidated by a US court in January, but with the latest approval, Musk has a greater chance of receiving it.
During the same meeting, Tesla's registered headquarters were also relocated from Delaware to Texas. In the initial vote from 2018, the stock package received the support of 73% of the shareholders. However, there was a legal challenge, and a judge in Delaware ultimately blocked the plan.
The judge stated that Musk had too much influence behind the scenes during the negotiations for the massive compensation, making it unfeasible to consider the process fair. Shareholders had no opportunity to make an educated decision because they were not informed about the backroom dealings.
The stock package allowed Musk to receive approximately 300 million Tesla shares at the value of 2018, to be paid in installments over a period of up to ten years. The targets included reaching a market capitalization of 50 billion dollars and later 650 billion dollars. Based on this target, the package's initial worth was estimated at approximately 56 billion dollars; however, stock prices are known to fluctuate significantly.
Tesla experienced a period of rapid growth and electric car enthusiasm, quickly reaching its target market value and even exceeding it at one point, making Musk's compensation package worth an estimated 100 billion dollars. However, investor interest has taken a turn for the worse, and Tesla is currently worth around 580 billion dollars on the stock exchange. In recent months, Musk threatened that he might move on from Tesla to develop AI applications if he no longer had control. This triggered another lawsuit from investors against Tesla in Delaware.
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At the annual general meeting, Tesla shareholders granted Elon Musk a significant number of additional shares, worth multiple billions in the USA. This decision was a reversal of a previous court ruling in Delaware that found Musk had too much influence during the negotiations. Tesla's registered headquarters were also moved from Delaware to Texas during the same meeting. The aim of Musk's stock package is tied to Tesla's market capitalization, with targets of $50 billion and later $650 billion, potentially making it worth over $100 billion based on Tesla's growth. Despite this, Musk has hinted at his interest in developing AI applications outside of Tesla, leading to another lawsuit from investors. Musk's Tesla shares, being part of electric car technology, are traded on various stock exchanges around the world, including those in the USA. The success of Tesla's electric vehicle business has also sparked interest in artificial intelligence technologies, which could potentially revolutionize the transport industry.
