Tesla encourages shareholders to ratify Musk’s 2018 comp package, approve TX reincorporation

Credit: Tesla

Tesla is putting in a lot of effort into encouraging shareholders to vote for the ratification of CEO Elon Musk’s 2018 compensation plan, which was rescinded by a Delaware Judge earlier this year, as well as the proposed reincorporation of Tesla in the State of Texas. The ratification of Musk’s 2018 pay package and the reincorporation of Tesla to Texas are listed as Proposals 3 and 4 in the EV maker’s 2024 annual shareholder meeting

Tesla’s recent efforts were listed in a Schedule 14A that was submitted by the electric vehicle maker to the United States Securities and Exchange Commission (SEC). As per the Schedule 14A, Tesla went live with dedicated advertisements and posts on social media encouraging shareholders to vote for Proposals 3 and 4. Tesla was quite direct with its messaging, stating that shareholders have a right to have the final say. 

Tesla also sent a letter to stockholders on May 13, 2024. The letter included a message from Tesla Board Chair Robyn Denholm, who highlighted that Proposals 3 and 4 are “critical to the continuation of Tesla’s mission and extraordinary growth.”

“The two proposals are incredibly important to the future of our Company and to your present and future investment. You voted to approve the 2018 CEO Performance Award six years ago, and time has shown the wisdom of your collective judgment. You have the chance to uphold the outcome of your vote. Make your voice and your vote heard by voting FOR these two proposals TODAY,” Denholm wrote. 

Apart from Denholm’s letter to TSLA stockholders, the communication also included a quick overview of just how much Tesla has grown since Musk’s 2018 compensation plan was approved. As per the company, TSLA stock has given a ~1,100% shareholder growth since March 2018. Tesla also turned around a $2.2 billion loss into $15 billion of profit. Vehicle production increased sevenfold as well from 2018 to 2023. 

The letter also included a quick guide on how TSLA shareholders could vote for Proposals 3 and 4, from online platforms to QR codes and regular mail. Tesla included hotlines that investors could contact about the matter as well. 

Tesla’s Schedule 14A about its efforts to encourage investors to vote for Proposals 3 and 4 can be viewed below. 

tm2413800d4_defa14a-gen by Simon Alvarez on Scribd

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Tesla encourages shareholders to ratify Musk’s 2018 comp package, approve TX reincorporation
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