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Major Tesla shareholder criticizes Elon Musk amidst pay vote
May
Certainly one of Tesla’s largest particular person shareholders has spoken out towards CEO Elon Musk and his stake within the firm, as buyers vote on the CEO’s not too long ago rejected 2018 pay package deal.
After a Delaware choose dominated in favor of a shareholder in a lawsuit in January, formally voiding Musk’s 2018 compensation package worth $55.8 billion, Tesla is now holding an investor vote over whether or not to approve or deny the pay plan as a part of its upcoming Annual Shareholder’s Assembly. Musk has also requested a new compensation package with more stock, and thus, more voting control, even threatening to develop synthetic intelligence elsewhere if he doesn’t get them.
Leo KoGuan, who’s one in every of Tesla’s largest particular person stakeholders, posted on X on Friday criticizing Musk for promoting shares over the previous few years, regardless of his asking for more voting control as a part of the continued compensation vote. KoGuan additionally referred to as Musk a “magician,” his supporters “brainless suckers,” and he referred to the proposed package deal as a “theft try.”
He additionally notes that, though Musk has bought round $39 billion Tesla shares for the reason that inventory peaked in 2021, he nonetheless has a 13.4-percent stake within the firm, though he desires a further 10 p.c. KoGuan says that he paid considerably extra for his very small quantity of shares within the firm, amounting to round $3.5 billion for simply 0.8 p.c of the corporate’s shares.
Paid $3.5 billion for measly 0.8% of Tesla out there. What’s your pores and skin in Tesla? Whereas the Magician is minus -$39 billion and already received 13.4% of Tesla. Theft of ten thousand years! However he needed 10% extra. Brainless SUCKERS cluelessly are helping this theft try. https://t.co/SxGfrbjtCY
— KoGuan Leo (@KoguanLeo) May 5, 2024
The statements adopted an analogous post made by KoGuan simply 20 minutes earlier, wherein he claimed that Tesla’s mission to speed up the world’s transition to sustainable power was only a “ruse to suck in naive buyers and engineers.” He adopted up with one other put up blatantly saying shareholders ought to vote no:
Don’t be a sucker, simply vote NO https://t.co/kBBV0ESfVO
— KoGuan Leo (@KoguanLeo) May 5, 2024
This isn’t the primary time that KoGuan has been crucial of Musk, although he was typically a supporter of the Tesla CEO just a few years ago. KoGuan stated final month that Musk should consider “fading away and appointing his replacement” if he isn’t prepared to spend extra time on Tesla. He additionally stated in January that Musk is “killing shareholders and Tesla,” including that he wouldn’t have invested within the firm had he recognized this earlier than.
Voting on the package deal and different proposals started when Board Chair Robyn Denholm filed the corporate’s proxy assertion. Tesla and Denholm have each expressed help for the ratification of Musk’s pay package, as well as for the company’s intent to move incorporation from Delaware to Texas.
“We don’t agree with what the Delaware Courtroom determined, and we don’t assume that what the Delaware Courtroom stated is how company regulation ought to or does work,” Denholm wrote within the submitting. “So we’re coming to you now so you may assist repair this difficulty—which is a matter of elementary equity and respect to our CEO.”
Tesla will maintain its Annual Shareholder Assembly on June 13, and shareholders can vote on ratifying Musk’s 2018 pay plan between every now and then. The corporate has additionally launched a devoted internet web page detailing learn how to solid shareholder votes and suggesting that buyers vote sure on two proposals, which you’ll see here. You can even discover Tesla’s full proxy assertion here.
What are your ideas? Have you ever voted on Tesla’s Shareholder Assembly proposals but? Let me know the way you voted at zach@teslarati.com, discover me on X at@zacharyvisconti, or ship us ideas at tips@teslarati.com.
