Live Chat

Tesla shares up after shareholders approve CEO Elon Musk's massive pay package

Tesla shareholders greenlight Elon Musk’s $56 billion pay deal

Tesla shareholders approved CEO Elon Musk's massive pay package late Thursday, marking an important symbolic victory for the EV maker. They also greenlit the company's move to reincorporate in Texas from Delaware.

The advisory vote on the pay package, while not legally binding, saw Tesla shares rise on the day, closing up 3% at the end of trading on Thursday. Tesla shares have had a rough ride so far in 2024 — they are down over 26% year-to-date as of June 14.

Musk, receiving cheers and chants of “Elon, Elon!” from the shareholders, expressed his gratitude, saying, “I just want to start off by saying, hot damn, I love you guys. We are not just opening a new chapter for Tesla, we are starting a new book.”

Musk then proceeded to double down on the company’s ambitious autonomous-vehicle goals, calling them “mind blowing”, and noted that large shareholders may not fully grasp their potential.

He also highlighted Tesla’s advanced capabilities in humanoid robots, AI, and chip-making, asserting that Tesla’s know-how “far” exceeds that of companies like Apple, Meta Platforms, and Nvidia. The latter recently became the third three-trillion-dollar company in the U.S., behind Apple and Microsoft.

The last two Tesla earnings reports have left some investors skeptical of the stock, with the January report even being described as a “train wreck”. The company also disclosed a 48% drop in Q1 profits at its last earnings call in April. Musk has made efforts to reassure investors that the EV maker is in between “two major growth waves”.

Musk's tweets alone have also given TSLA shares a fair bit of momentum this year.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Legal battle over Musk pay “far from over”

Before the meeting, a “no” vote on the pay package was seen as a potential setback for Tesla, while a “yes” vote raised hopes for success in any legal challenge to the Delaware court's January decision that rescinded the package.

Thursday’s approval removes a major concern, potentially averting a scenario where Musk might leave Tesla to focus more on his other ventures, according to comments from CFRA analyst Garrett Nelson shared with MarketWatch:

“The news lifts a major overhang on the shares, although we wouldn’t be surprised by a ‘sell the news’ reaction on Friday following big gains over the past two trading sessions”.

By supporting the pay package, shareholders sent a clear message that “a deal is a deal” and that Musk deserved to be rewarded for meeting the contract's challenging targets. Nelson added:

“The legal battle over the compensation plan is far from over, but we think the vote greatly strengthens Tesla’s case”.

Tesla shareholder approval of Musk pay “may not fully resolve the matter”

Tesla acknowledged that the vote's outcome would still leave legal uncertainties. The company said in proxy documents that “even a favorable vote by our stockholders to ratify the 2018 CEO performance award may not fully resolve the matter”, and that it could not “predict with certainty how a stockholder vote to ratify the 2018 CEO performance award would be treated under Delaware law in these novel circumstances”.

Musk and other top Tesla executives had sought retail investor support for the CEO pay package, despite opposition from some large institutional investors and proxy advisers.

Tesla board Chair Robyn Denholm defended the pay package as “a matter of fundamental fairness and respect to our CEO” and praised Tesla’s investors, stating, “no other shareholder base understands the company as you do. You are the owners of the company.”

Tesla shares gain after Musk's pay package approved by shareholders

Citi “stays neutral” on Tesla shares, sentiment could improve on “pivot to new products”

Musk also noted on X late Wednesday that both his compensation package and the reincorporation in Texas were passing by “a wide margin.” Shareholders re-elected James Murdoch and Kimbal Musk, Elon Musk’s brother, to the board.

Citi analyst Itay Michaeli, in a note cited by MarketWatch earlier on Thursday, said he was “staying neutral” on the shareholder vote but suggested that sentiment on Tesla shares could improve “if the story can pivot toward new products” and provides a credible autonomous vehicle deployment plan at its upcoming “robotaxi” event.

Tesla shares have declined by about a quarter this year, contrasting with a 14% gain for the S&P 500 index.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Wednesday, 6 November 2024

Indices

U.S. presidential election market volatility drives Bitcoin prices to reach a historic high

Stock market rally

Tuesday, 5 November 2024

Indices

US Election Results Trigger Stock Gains Across Europe, Asia, and US

US Election Trump's victory

Tuesday, 5 November 2024

Indices

Trump Victory Spurs Market Gains and Economic Shift Expectations

Tuesday, 5 November 2024

Indices

US election: bitcoin price (BTC) surged to new record as Trump leading ahead

Live Chat