Tesla was previously pulling out all the stops to persuade shareholders to approve its move to Texas and CEO Elon Musk's $56 billion pay package. However, we might have judged the company's next move too soon.
This week, the American automaker has upped the ante, offering shareholders a chance to win a factory tour with Musk and chief designer Franz von Holzhausen. This sweepstakes-for-votes strategy includes an exclusive tour of the Tesla factory in Austin and an invitation to the June 13 annual meeting.
Tesla Shareholder Sweepstakes
Two key decisions for shareholders include the potential reinstatement of Musk's $56 billion pay package and the proposal to move Tesla's incorporation from Delaware to Texas. This initiative aims to engage shareholders more deeply in the company's future direction.
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No Voting Bias in Sweepstakes Entry
Tesla's sweepstakes rules are clear: shareholders must submit proof of voting, but it doesn't matter how they vote.
According to Tesla's website, shareholders can enter the drawing regardless of whether they vote for or against the proposals. This inclusive approach ensures all shareholders have a chance to participate.
"You do not need to vote for or against any proposals to be eligible for entry. You are eligible to vote and to enter the drawing, only if you were a stockholder of record or a beneficial owner at the close of business on April 15, 2024," the website says.
It is unclear whether this incentive violates any U.S. Securities and Exchange Commission (SEC) rules.
With a select group of stockholders, Elon Musk and Franz von Holzhausen will lead the tour through the Model Y and Cybertruck manufacturing lines.
Legal Challenges to Musk's Pay Package
Earlier this year, a Delaware judge rejected Musk's substantial pay package, citing concerns about the board's independence and the lack of transparency to shareholders during the 2018 vote. However, Chancellor Kathaleen McCormick has recently allowed the possibility of the case being relitigated in Texas, although she reserves the right to reconsider her ruling if necessary.
In her April court letter, McCormick said that if she had incorrectly interpreted the defendants' position, the court officers would be responsible for correcting it. She added that the defendant's statements gave her "great comfort."
Tesla shareholders will vote on June 13 regarding Musk's pay package and the incorporation move to Texas. The deadline to submit proof of voting is June 7, just before midnight Central Time. The exclusive Gigafactory tour will occur on June 12 at Tesla's headquarters in Austin.
Alternative Entry for Non-Voting Shareholders
Tesla offers an alternative method for shareholders who prefer not to vote but still wish to enter the drawing. They can send a postcard to Tesla Gigafactory Tour, c/o FGS Global, 475 Sansome St., Suite 1750, San Francisco, CA 94111. The postcard must include the shareholder's name, postal address, and email address and confirm that they were a stockholder of record or beneficial owner as of April 15, 2024.
Fisker Faces Another Round of Layoffs
In other EV industry news from TechCrunch, struggling startup Fisker has undergone another round of significant layoffs. Sources indicate that hundreds of workers have been let go recently.
Fisker, which employed approximately 1,135 employees as of April 19, now has only about 150 remaining after layoffs in late April and this latest cut. The company has been in a downward spiral for months, and these reductions are hitting hard.
