TapTechNews May 15th news, Tesla is actively lobbying shareholders to pass two resolutions at the upcoming annual shareholders meeting. These two resolutions are to approve Tesla CEO Elon Musk's $56 billion (approximately RMB 405.4 billion) compensation package for 2018, and to move Tesla's state of incorporation from Delaware to Texas.
Previously, Musk's compensation package was revoked due to improper procedures ruled by a Delaware judge. Tesla hopes shareholders will approve it again. The proposal to move the company's state of incorporation to Texas also requires shareholder approval, and these two proposals are listed as the 3rd and 4th items on Tesla's 2024 annual shareholders meeting agenda.
Tesla detailed its recent efforts to promote voting in the 14A form submitted to the U.S. Securities and Exchange Commission (SEC). According to the form, Tesla has posted specific advertisements and posts on social media to encourage shareholders to support the 3rd and 4th proposals. Tesla's wording is straightforward, emphasizing that shareholders have the ultimate decision-making power.
On May 13th, Tesla's board chairman, Robyn Denholm, also sent a letter to shareholders. The letter emphasized that the 3rd and 4th proposals are critical to Tesla's mission continuation and extraordinary growth.
These two proposals are crucial for the future of the company and your current and future investments. Six years ago, you approved the CEO performance bonus plan for 2018, proving the wisdom of your collective judgment. Now you have the opportunity to uphold the voting results, support these two proposals by voting, and make your voice and will heard, Denholm wrote.
In addition to Denholm's letter, Tesla also showed shareholders the significant achievements Tesla has made since Musk's compensation package was approved in 2018. According to the company, since March 2018, Tesla's stock price has brought shareholders approximately a 1100% return. Furthermore, Tesla has reversed a $2.2 billion loss into a $15 billion profit. From 2018 to 2023, Tesla's vehicle production has also increased sevenfold.
The letter also included a quick guide on how Tesla shareholders can vote to support the 3rd and 4th proposals, covering online platforms, QR codes, and regular mail, and Tesla provided a hotline for investors to contact regarding this matter.