It appears that Tesla’s efforts to encourage its shareholders to vote for the ratification of Elon Musk’s 2018 CEO Performance Award and the company’s reincorporation from Delaware to Texas are bearing fruit. As per Elon Musk in a recent post on X, Tesla investors are currently on track to approve Proposals Three and Four in the 2024 Annual Stockholders Meeting, and they are doing so by a wide margin.
Musk shared a couple of graphs showing a comparison between “For” votes and “Against” votes for the 2018 CEO Performance Award and Tesla’s proposed redomestication to Tesla. As could be seen in both graphs, the “For” votes for both resolutions have passed the “Guaranteed Win” mark. Musk thanked Tesla investors in his social media post.
Both Tesla shareholder resolutions are currently passing by wide margins!
— Elon Musk (@elonmusk) June 13, 2024
♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo
“Both Tesla shareholder resolutions are currently passing by wide margins! Thanks for your support!!” Musk wrote in a post on X.
Industry watchers have observed that about 70.5% of all outstanding TSLA shares, which would be worth about $400 billion, seemed to have participated in the vote for Tesla’s proposed redomestication to Texas. This represents an impressive voter turnout among Tesla investors, and it also addressed a concern that was highlighted by Bernstein analyst Toni Sacconaghi recently.
Based on the chart below, 70.5% of all outstanding Tesla shares participated in the Texas vote. $400B worth of Tesla shares. That's gotta be a new record for voter turnout for Tesla. https://t.co/yUq8Z2o9xu pic.twitter.com/rNFCSCDzyU
— Sawyer Merritt (@SawyerMerritt) June 13, 2024
Sacconaghi noted that one of the challenges Tesla needs to overcome at the 2024 Annual Stockholders’ Meeting was voter turnout. As per the Bernstein analyst, the company’s highest voter turnout prior to this year was only 63%. Passive investors typically just follow the recommendations of proxy advisers as well. “You have to get a majority of votes of shareholders that vote, and part of the challenge for Tesla is that not everyone votes,” the Bernstein analyst stated.
Needless to say, it appears that Tesla shareholders made their voices known this time around, and their stance on Elon Musk’s 2018 CEO Performance Award and Tesla’s reincorporation to Texas has never been clearer. After much effort on the part of TSLA shareholders, it looks like Elon Musk may still get paid for his efforts over the past six years, and Tesla may indeed be calling Texas its new home very soon.
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