Elon Musk 56B Package Might Not Be Approved! Leaving Tesla Soon?

It seems the Tesla CEO Elon Musk 56B package won’t be approved any time soon! But why?

Norway’s $1.7 trillion sovereign wealth is the 8th largest shareholder in Tesla with over .98% of shares. They are the main reason Musk might lose the voting.

As we know, Elon is indeed one of the richest men in the world and has one of the highest pay packages in America. The annual meeting, which will be held next week, will decide whether the $56 billion gets approved by the shareholders or not.

Elon Musk 56B Package: Will It Be Approved?

Since Elon has always been open about his voice in social media, especially in X, things look rough on Elon’s side. However, in 2018, Musk’s pay package was approved due to his contribution to the EV market and his being environmentally friendly.

At the same time, many institutional shareholder services are up for saying no to his compensation. Meanwhile, Wedbush, a private banking company believes that the package will be approved.

In the same meeting, they will also decide whether they want to reincorporate Tesla out of Delaware. Many are questioning Tesla’s demand amid rising competition in China and slowing EV sales.

Elon Musk 56B Package. Image Credit: Social Media.

However, Elon Musk 56B package will be secured if he can promise the shareholders that Tesla will be the future of self-driving cars. Wedbush has mentioned that if Elon promises the launch of lower, low-cost self-driving cars shortly, the shareholders will be on their side.

However, with the rise of Chinese car brands like BYD SUVs, it’s hard to say what will happen to the US Electric car market.

Elon Musk 56B Package. Image Credit: Social Media.

Wedbush also mentioned this, stating,

“Execution of the lower cost vehicle and driving incremental demand in the key China market must be flawless….otherwise, this could derail the bull thesis in the next 6 to 12 months.”

The meeting is not only to decide Elon’s compensation but it is also rumored that they will release Robotaxi.

ALSO READ: Is Elon Musk Rival App A YouTube Clone? Competition Alert!

Will Elon’s Package Be Approved?

Things about Elon’s compensation look pretty mixed, and the meeting will bring many interesting things to light. The Norges Bank Investment Management mentioned this by saying:

“While we appreciate the significant value generated under Mr. Musk’s leadership since the grant date in 2018, we remain concerned about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk.”

We will find out soon what will happen to Elon Musk 56B Package. Tesla stock has been pretty stagnant, and amazing growth has not been seen recently. This could also be why the shareholders are unhappy with the compensation.