Tesla shareholders approve move to Texas and reject activist judge

Started by Legend, Jun 13, 2024, 05:05 PM

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Legend

Jun 13, 2024, 05:05 PM

I really didn't expect either of them to pass since the Tesla subreddit has been strongly against them, but I guess that's just reddit being the bubble that it is.


Very happy that the judge's opinion was rejected since that was just ridiculous. Don't care about Tesla reincorporating in Texas but it's good in general that the company still seems to have the backing of its investors. That vote needed 50% of all shareholders to vote yes, with non votes counting as a no.



*Full discloser, I own less than 1 share of Tesla stock.

kitler53

#1
Jun 13, 2024, 08:12 PM
his payout is beyond ridiculous.   no one contributes to the company to deserve that kind of money.   especially not tweets 1,000 times a day instead of actually working musk...
         

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Legend

#2
Jun 13, 2024, 09:02 PM
Quote from: kitler53 on Jun 13, 2024, 08:12 PMhis payout is beyond ridiculous.   no one contributes to the company to deserve that kind of money.   especially not tweets 1,000 times a day instead of actually working musk...
Back when the agreement was made it was "only" $4 billion if I remember right. The extreme increase in Tesla's valuation is why it's ~$50 billion today.

No clue what it's like today but this was from the period when Tesla was struggling and he was well known for working late nights and sleeping at the office/factory. Elon Musk sleeps under a desk even after YouTuber crowdfunded a couch

BananaKing

#3
Jun 14, 2024, 07:55 AM
What's the story with the judge?

Legend

#4
Jun 14, 2024, 08:27 AM
Quote from: BananaKing on Jun 14, 2024, 07:55 AMWhat's the story with the judge?
Back in 2018 Tesla shareholders approved a pay package for Musk. If he grew the company an incredible amount and hit some other performance targets, he'd get $2.3 billion in stock at the time, now worth ~$50 billion thanks to Tesla's growth. Otherwise he wouldn't get a cent.

A judge recently nullified that shareholder vote because the judge couldn't fathom that shareholders understood what they were voting for and actually wanted this. The judge made a whole bunch of stupid comments and she acted as if she was saving shareholders from Musk. The "finders fee" of saving Tesla from this ordeal could be $4 billion paid to the non-Tesla lawyers. I don't think anything of this scale has ever happened before.


So Tesla had to redo the vote just to really confirm that yes, shareholders wanted this.
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