Elon Musk has leaked a number of the outcomes from Tesla’s shareholders vote as a messy week begins for the shareholders of the electrical automobile firm.
Tesla is holding its annual shareholder assembly on Thursday, June 13.
In the course of the assembly, Tesla will launch the outcomes of the shareholders’ votes relating to a number of proposals, together with the extremely publicized vote to reinstate the CEO’s compensation bundle rescinded by a decide earlier this yr and Tesla’s incorporation transfer to Texas.
Nonetheless, CEO Elon Musk has already leaked a number of the outcomes:
Musk is claiming that “roughly 90%” of the retail shareholders who’ve voted to information have voted for his pay bundle to be reinstated and the incorporation transfer to Texas.
There are two vital caveats to his assertion: 90% of retail shareholders doesn’t imply 90% of the shares held by shareholders and retail shareholders additionally characterize lower than half of Tesla’s excellent shares.
Institutional buyers characterize the bulk.
Public firms typically solely launch the outcomes of a shareholder’s vote at a shareholder’s assembly as soon as the voting is completed.
This was truly an issue with the latest Disney proxy battle. Some buyers referred to as for Disney to be investigated by the SEC after vote outcomes have been leaked to the media previous to the vote being shut. This was seen as a PR tactic by Disney since solely the corporate and its advisors might have had entry to the outcomes for them to be leaked to the media.
Now, on this case, Tesla’s CEO is instantly releasing a number of the outcomes publicly.
Electrek’s Take
The principle factor individuals want to bear in mind is that whatever the outcomes of the vote, nothing ends on June 13.
The outcomes will merely be used within the attraction course of, which remains to be months away.
You recognize what else goes for use within the attraction course of? Each careless factor Elon has stated in the previous couple of months relating to the proxy battle and his threats to shareholders.
And with the vote now being days away, I doubt Elon will be capable to cease himself from placing his foot in his mouth. It’s going to be a messy week that might be underneath a authorized microscope within the coming months.
Like this remark for instance, Elon is publicly agreeing with a press release saying that the vote will not be about his compensation bundle however about “shareholder democracy” being suppressed by a “random activist decide”.
An officer of Tesla can’t be saying that publicly and never anticipate it to return up within the inevitable litigation round this situation. Elon is a authorized legal responsibility.