After Elon Musk announced that shareholders will likely approve his contentious $56 billion compensation package and a resolution to relocate the electric car maker’s incorporation to Texas, Tesla’s stock price sharply increased. As of 10:45 a.m. ET, the company’s stock was up approximately 3%.
Tesla shareholders can vote on two resolutions until the company’s annual meeting on Thursday. The majority of Tesla shareholders must vote by Wednesday at the latest. Those not attending the shareholder meeting on Thursday can cast an online or in-person vote.
First up for discussion is whether to approve a $56 billion compensation package that was first approved by shareholders in 2018 but was later overturned by a Delaware judge in January.
The second resolution concerns whether Tesla should change its state of incorporation from Delaware to Texas. Musk questioned his followers on social media platform X earlier this year, and that suggestion came about. Although Tesla has grown to become one of the biggest electric car manufacturers in the world, a lot has changed since 2018. The original compensation package included aggressive targets for the company’s financial performance and market value.
Tesla is seeing a slowdown in its growth and more competition, particularly from Chinese firms. During that time, Musk also acquired Twitter, now known as X, and increased.
Also Read:
Why Apple is Approaching Generative AI With a Small-Model Strategy
UAE: Seeking Employment? As AI Grows, Hundreds of Tech Jobs Become Available.
