Tesla's Bold Move: Elon Musk's Compensation & Texas Reincorporation

In its latest move, Tesla is making waves by encouraging shareholders to ratify Elon Musk’s ambitious 2018 compensation plan while also proposing a significant corporate shift from Delaware to Texas. This bold letter to shareholders underscores Tesla's roots as an 'American Growth Story,' highlighting Musk’s achievements and the company's far-reaching impact.

Tesla’s strategy was outlined in a Schedule 14A filed with the SEC. This documentation sheds light on Musk's 2018 compensation plan targets, once deemed nearly impossible, that have now been fully met. The importance of Musk’s leadership in driving innovation and value creation is a central theme.

'NEWS: Tesla has just released a new letter to shareholders titled 'An American Growth Story.'

Here's what the letter says: 'Elon hit every “jaw-dropping” target in the innovative and ambitious 2018 Award, leading to staggering growth. We have seen what the leadership of an incentivized Elon can do to drive innovation and create value.'

An American Growth Story

In Tesla's letter to shareholders, they state: 'Elon hit every “jaw-dropping” target in the innovative and ambitious 2018 Award, leading to staggering growth. We have seen what the leadership of an incentivized Elon can do to drive innovation and create value. Protect that same value creation for the future.'

The letter further highlights that despite a signed contract, Musk has not been compensated for any of his work with Tesla over the past six years, despite leading the company to unmatched growth and stockholder value. 'That strikes us as fundamentally unfair and inconsistent with the will of the stockholders who voted for it,' Tesla asserts.

The letter goes on to emphasize the crucial role of Musk’s leadership as Tesla embarks on its next phase of growth. Since 2018, the impact under Musk’s leadership has been monumental. Not only has Tesla garnered $15 billion in profits, but shareholders have also witnessed a staggering ~1,100% return on their investments since March 2018.

Furthermore, Tesla pointed out the significant economic impact Giga Texas has had on the state's economy, contributing roughly $987 million to the gross state product in 2022. Highlighting national pride, Tesla noted that the top four ‘Most American’ cars on the market today are Teslas, reinforcing its identity as a pillar of American innovation and manufacturing.

The communication concluded with a powerful quote from legendary investor Warren Buffett, who said, 'Elon Musk…shows what America produces. Elon is taking on General Motors and Ford and Toyota – all these people who have all this stuff. And he’s got an idea. And he’s winning. That’s America. You can’t dream it up. It’s astounding.'

As Tesla maneuvers through these corporate transitions and continues its rapid growth trajectory, the company underscores the alignment between Musk's visionary leadership and its broader strategic goals. Tesla's latest Schedule 14A can be explored here.