OWe know presidents of the Republic who would dream of such a plebiscite. He’s no longer a boss, he’s an idol. Like a rock star, Elon Musk took to the stage of Tesla’s general meeting dancing. “I love you, you are the greatest shareholders of all American companies”, he told his fans, Thursday June 13, in Austin (Texas). It must be said that the genius of the shareholders, and particularly the individuals, who represent nearly 30% of its capital, consisted in approving, for the second time, a bonus of nearly 48 billion dollars (44.5 billion euros) for the leader at the value of the current stock market price.
This jackpot is not new money, but shares in his company, which he will be able to buy at the price of 2018, the date of the first vote for this bonus. At the time, few people thought such an achievement possible. The firm was valued at less than $60 billion, which was already considerable for such a small automaker.
The plan provided for a payment in twelve tranches, the first from a valuation of 100 billion dollars, then in tranches of 50 billion up to a ceiling of 650 billion. Absurd at the time; even Toyota, the world leader in the sector, was worth three times less than that. However, Tesla did much better, even touching $1,000 billion in November 2021. The firm was no longer considered a manufacturer of cars, but of computers on wheels and should therefore be compared to Apple or Microsoft rather. than Volkswagen.
Old demons of American capitalism
Since then, the euphoria has subsided. The company lost 27% of its value in 2024 and its valuation fell to 570 billion, which is still twice as much as Toyota. Given the performance of 2023, Elon Musk won his bet. But, following a complaint from a shareholder, the court in Delaware, where the company is registered, ruled against this extravagant bonus, ruling that the board of directors was not independent and that the shareholders were not sufficiently well informed. Hence Thursday’s confirmation vote, intended to show the judges that the shareholders acted in full conscience. This would allow the Tesla boss to increase his stake in the company from 13% to more than 20%.
However, it is not yet won. The Delaware court has yet to rule. The company hopes that this new vote will overturn the court’s grievances. Moreover, the company’s board of directors took the opportunity to approve the move of the legal headquarters to Texas, being much less careful about governance issues.
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