A group of Tesla Inc. (NASDAQ:TSLA) shareholders, including SOC Investment Group and state officials from Nevada, New Mexico and Connecticut, urged investors on Thursday to vote against CEO Elon Musk's $1 trillion pay package at the company's upcoming November meeting, according to a regulatory filing.
Check out the current price of TSLA stock here.
Board Leadership Faces Opposition
The group also urged investors to vote against bringing back directors Ira Ehrenpreis, Joe Gebbia and Kathleen Wilson-Thompson, Reuters reported.
They criticized the board for what they called an excessive focus on keeping Musk in place and a lack of proper oversight of company management.
New York City Comptroller Brad Lander has also joined in opposing the board.
Mixed Signals On Tesla Performance
Although Tesla announced record vehicle deliveries on Thursday, the shareholder group highlighted weakening operational and financial indicators.
Investors are also particularly worried about how the expiration of U.S. electric vehicle tax credits could affect demand.
Divided Opinion On Compensation
Morgan Stanley (NYSE:MS) analyst Adam Jonas backed Musk's pay package, saying it benefits shareholders given the growth potential in robotics and self-driving technology.
In contrast, Sen. Bernie Sanders called the deal "grossly immoral," and Pope Leo XIV warned that widening income inequality could spell serious trouble if left unchecked.
Tesla Defends Compensation Structure
Tesla said on X that Musk's performance-based pay plan ties his compensation to "shareholder value creation of trillions of dollars," adding, "If Elon Musk doesn't deliver results, he receives nothing."
Board Chair Robyn Denholm emphasized the package is more about "voting influence" than financial value, while Musk described the vote as being about keeping control.
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