Friday, September 12, 2025

Just Say No: Tesla Shareholders Urge Rejection of Musk’s $56 Billion Pay Package

A group of Tesla (Nasdaq: TSLA) shareholders, including Amalgamated Bank (Nasdaq: AMAL) and SOC Investment Group, is calling on investors to vote against CEO Elon Musk’s proposed $56 billion compensation package at the company’s upcoming annual meeting on June 13. 

The coalition argues that the pay package is not in the best interest of the electric vehicle maker, citing concerns over Musk’s divided attention among his multiple business ventures and Tesla’s recent performance challenges.

Also read: Tesla’s Largest Retail Shareholder Says Elon Musk Is a ‘Magician’ Who’s Only in it ‘for Money and Power’

In a letter to shareholders, the group highlighted Tesla’s declining global sales, slowing electric vehicle demand, aging model lineup, and a 30% drop in the stock price this year. They also expressed apprehension about potential lawsuits arguing that the pay package constitutes corporate waste. The shareholders questioned the incentivizing effect of the proposed compensation, given Musk’s perceived role as a part-time CEO at Tesla.

The group is also urging investors to vote against the reelection of board members Kimbal Musk, Elon’s brother, and James Murdoch, a former executive at media company Twenty-First Century Fox (Nasdaq: FOXA)

The shareholders claim that Tesla is suffering from a material governance failure that requires urgent attention and action.

Musk’s pay package, originally approved by shareholders in 2018, was recently voided by a Delaware judge over concerns that it was not in the best interest of shareholders. Tesla’s board is now putting the package to a second vote to demonstrate continued investor support. The company has hired a strategic adviser to drive retail investor participation in the upcoming vote.

The shareholder group raised additional concerns about Tesla’s lagging sales and disappointing first quarter, emphasizing the need for a full-time CEO who is adequately focused on the company’s long-term sustainable success.

“Over the past three years, and especially over the past year, Tesla has clearly lagged behind its competitors and the broader market. We believe that the distractions caused by Musk’s many projects, particularly his decision to buy Twitter, have played a material role in Tesla’s underperformance,” they wrote.


Information for this story was found via Bloomberg, AP News, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Tesla Lays Off Entire Supercharger Team in Midnight Purge

Tesla (Nasdaq: TSLA) CEO Elon Musk has made significant cuts to the company’s workforce, including...

Wednesday, May 1, 2024, 04:47:00 PM

Twitter Spaces to Host Ron DeSantis’ Presidential Announcement Alongside Elon Musk

In an unorthodox fusion of politics and technology, Florida Governor Ron DeSantis is poised to...

Tuesday, May 23, 2023, 03:46:13 PM

Is Elon Musk Creating a Twitter Crypto Coin?

Rumours are circling on social media that new Twitter CEO and crypto proponent Elon Musk...

Tuesday, December 6, 2022, 04:06:00 PM

Tesla Investor’s Exit Sparks Debate, Others Follow Suit

Fred Lambert, the longtime editor of Electrek and an early Tesla (NASDAQ: TSLA) advocate, has...

Saturday, September 7, 2024, 09:38:00 AM

Danish Pension Funds Divest $103.8 Million in Tesla Over Labor Dispute

In a growing protest against Tesla‘s (Nasdaq: TSLA) uncompromising stance on labor cooperation in Sweden,...

Friday, December 8, 2023, 02:17:00 PM