A group of Tesla shareholders are urging investors to vote against a compensation package exceeding $40 billion for CEO Elon Musk, citing concerns about its impact on the electric vehicle maker's future. The shareholders, including New York City Comptroller Brad Lander, SOC Investment Group, and Amalgamated Bank, argue that ratifying Musk's pay package would not contribute to Tesla's long-term growth and stability.
Tesla is currently facing challenges such as declining global sales, slowing demand for electric vehicles, an aging model lineup, and a 30% drop in its stock price this year. The shareholder group expressed worries that approving the compensation package could potentially lead to lawsuits claiming corporate waste. They also highlighted Musk's increasing focus on other business commitments, raising questions about his role as a part-time CEO at Tesla.
