Tesla shareholders call for rejection of Musk's unprecedented $1 trillion payout package
Photo: EPA

Shareholders Tesla including SOC Investment Group and several government officials, urged investors to vote against unprecedented benefits package Elon Mask by $1 trillion. About this writes Reuters citing a shareholder letter.

In the letter, the coalition, which also included the treasurers of Nevada, New Mexico, and Connecticut, called not only for the compensation package to be rejected, but also for the re-election of board members Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.

The authors of the appeal stated that the board of directors, in its "relentless pursuit" to retain Musk, delayed the implementation of key tasks approved at the last annual meeting and failed to ensure proper control over management.

They also drew attention to the deterioration in the company's operating and financial results.

New York City Comptroller Brad Lander, a longtime critic of Tesla and its board of directors, also opposed the payout package. His term expires on January 1, 2026.

Despite the record quarterly deliveries reported by Tesla this week, the market is worried about the expiration of US tax incentives for electric car buyers, which could sharply reduce demand.

In response to the criticism, the company said on social network X that the compensation plan "ties Musk's compensation to the creation of trillions of dollars of value for shareholders."

"If Elon Musk does not achieve results, he will get nothing," Tesla emphasized.