Tesla, Inc. has filed a definitive proxy statement with the U.S. Securities and Exchange Commission (SEC) regarding its 2024 annual meeting. The statement includes a ratification of CEO Elon Musk's 2018 compensation package, which has been a subject of debate due to its potential $56 billion value, a figure that has grown in proportion to the value created for shareholders. The package was initially valued at $2.3 billion in 2018, but Tesla's success has significantly increased its worth. Cathie Wood of ARK Invest defended Musk's alignment with shareholder interests, highlighting his commitment to not receiving any compensation unless specific milestones were met. Despite challenges such as production difficulties and competition, Tesla has achieved substantial growth, with revenues compounding at a 49% annual...Show More

Tesla, Inc. has filed a definitive proxy statement with the U.S. Securities and Exchange Commission (SEC) regarding its 2024 annual meeting. The statement includes a ratification of CEO Elon Musk's 2018 compensation package, which has been a subject of debate due to its potential $56 billion value, a figure that has grown in proportion to the value created for shareholders. The package was initially valued at $2.3 billion in 2018, but Tesla's success has significantly increased its worth. Cathie Wood of ARK Invest defended Musk's alignment with shareholder interests, highlighting his commitment to not receiving any compensation unless specific milestones were met. Despite challenges such as production difficulties and competition, Tesla has achieved substantial growth, with revenues compounding at a 49% annual rate and adjusted EBITDA growing 142% on average per year. The company's market cap also saw an average annual increase of 91% from early 2018 to mid-2022. Tesla's stock price reached a high of $414 in 2022 and, despite a correction, remains significantly above the initial value. The proxy statement emphasizes the importance of Musk's leadership in Tesla's value creation and innovation, noting that all Tesla employees, who are shareholders, have benefited from the company's success. The statement also addresses the fairness of compensating Musk for his contributions and the risks he took with his compensation structure. Tesla has updated its investor relations website with additional information and urges shareholders to review these materials ahead of the annual meeting.