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Dear TSLA Stock Fans, Mark Your Calendars for June 13

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Tesla (NASDAQ:TSLA) stock continued to slip today, dropping about 1% ahead of the company’s all-important shareholder vote on June 13. Indeed, on June 13, Tesla shareholders will vote on whether to approve CEO Elon Musk’s 2018 compensation package in addition to other pertinent proposals.

What do you need to know about the potential TSLA stock catalyst?

Well, the June 13 vote concerns Musk’s $46 billion pay package, which has become a point of friction for the electric vehicle (EV) maker as it continues to suffer from dwindling sales. Despite receiving earlier shareholder approval, Musk’s compensation package was rejected by a Delaware court back in January “because of concerns about the approval process,” per The Wall Street Journal.

Indeed, one group of Tesla shareholders has argued that the firm’s Board of Directors, which approved Musk’s lavish compensation package, is wrought with partiality and filled with close collaborators of Musk. According to the group, they haven’t held him accountable as the company suffers brutal losses this year.

“Even as Tesla’s performance is floundering, the board has yet to ensure that Tesla has a full-time CEO who is adequately focused on the long-term sustainable success of our company,” said the shareholder group.

As such, the group is urging shareholders to reject the compensation package as well as deny the re-election of Kimbal Musk and James Murdoch to the board. Kimbal Musk is the CEO’s brother while James Murdoch is a friend of Elon Musk as well as a major shareholder in Fox (NASDAQ:FOXA).

TSLA Stock Continues to Slide Ahead of Landmark Shareholder Vote

TSLA stock has been shedding market capitalization like it has been going out of style lately. Indeed, TSLA is down almost 30% so far this year as perhaps the biggest victim of 2024’s EV cold spell. The company has effectively lost hundreds of billions in value as a result of this year’s selloff.

In that regard, some advisory firms have also recommended shareholders vote against the compensation package, to mitigate additional potential losses to share value.

“The excessive size of the award, both on a pure dollar basis and in terms of the dilutive effect upon exercise, remains very much top of mind,” warned Glass Lewis. “The Company’s provided rationale does little to combat these concerns given their proportionate magnitude.”

Regardless, June 13 marks an important day for Musk, Tesla and especially TSLA stock shareholders.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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