Tesla is continuing its efforts to encourage shareholders to vote for the ratification of Elon Musk’s 2018 compensation plan and the company’s proposed reincorporation from Delaware to Texas. This time around, Tesla sent a letter to shareholders highlighting the fact that the electric vehicle maker is an “American Growth Story.”
Tesla’s new communication to its shareholders was revealed in a Schedule 14A filed with the United States Securities and Exchange Commission (SEC). As could be seen in the Schedule 14A, Tesla is emphasizing the fact that Elon Musk’s 2018 compensation plan targets have already been met, and that they were considered near impossible when they were proposed.
Following is the letter included in the Schedule 14A.
NEWS: Tesla has just released a new letter to shareholders titled "An American Growth Story."
— Sawyer Merritt (@SawyerMerritt) May 21, 2024
Here's what the letter says: "Elon hit every “jaw-dropping” target in the innovative and ambitious 2018 Award, leading to staggering growth. We have seen what the leadership of an… pic.twitter.com/64AU30QTG2
An American Growth Story
Elon hit every “jaw-dropping” target in the innovative and ambitious 2018 Award, leading to staggering growth. We have seen what the leadership of an incentivized Elon can do to drive innovation and create value. Protect that same value creation for the future.
And in America, a deal should be a deal.
Despite having a signed contract in place, Elon has not been compensated for any of his work for Tesla over the past six years, even though he led Tesla to significant growth and stockholder value. That strikes us – and the many stockholders from whom we have already heard – as fundamentally unfair and inconsistent with the will of the stockholders who voted for it.”
As we embark on our next phase of growth, Elon’s leadership is more important than ever.
Tesla then highlighted that since 2018, Elon Musk has effectively led Tesla to $15 billion worth of profit, and shareholders have seen a ~1,100% return on their investments since March 2018. The company also noted that the overall impact of Giga Texas on the state’s gross state product reached an impressive ~$987 million in 2022, and that the top four “Most American” cars today are Teslas.
Tesla’s letter to shareholders ended with a quote from legendary investor Warren Buffett. “Elon Musk…shows what America produces. Elon is taking on General Motors and Ford and Toyota – all these people who have all this stuff. And he’s got an idea. And he’s winning. That’s America. You can’t dream it up. It’s astounding.”
Tesla’s new Schedule 14A can be viewed here.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
