SAN FRANCISCO, May 28 (Reuters) - Elon Musk is offering
factory tours to 15 Tesla shareholders who vote on his $56
billion pay package at the upcoming meeting, the latest effort
by the electric vehicle maker to rally votes for the
compensation after a court struck it down.
The upcoming vote is seen as a referendum for Musk's
leadership at a time when investors worry that he is distracted
by his other ventures and that his often controversial comments
are weighing on the reputation and sales of Tesla.
The company is making an unusual and public effort to rally
support for the Musk's pay.
"Don't delay, vote today!" Tesla said on Tuesday.
The tour to Tesla's production lines for Cybertrucks and
Model Ys in Texas will take place on June 12, the day before
Tesla's annual shareholders' meeting, Tesla said on its website.
"Please let us know if you have any questions about voting
your Tesla shares!" Musk said on social media platform X,
formerly known as Twitter, which he owns.
Musk has threatened to build artificial intelligence
products outside of Tesla if he can't get 25% voting power at
Tesla, the world's most valuable automaker.
Musk, the world's richest person, currently owns around 13%
of Tesla stock, and exercising his stock options would result in
him owning a total of 22% of the company.
He has also started AI company xAI, which raised $6 billion
in its latest funding.
Tesla has asked shareholders to reaffirm their approval of
Musk's record-breaking $56 billion compensation that was set in
2018, but was rejected by a judge who found the package was
negotiated by directors who appeared beholden to Musk.
The move came shortly after Musk said Tesla is laying off
more than 10% of its global workforce amid falling sales and
intensifying competition, especially from Chinese rivals.
Proxy advisory firm Glass Lewis said on Saturday it has
urged Tesla shareholders to reject the pay package, citing
Musk's "slate of extraordinarily time-consuming projects."
According to data and research firm S&P Global Market
Intelligence, 44% of Tesla's common stock is held by
nonprofessional shareholders that include retail investors.
That is the most of any of the 10 largest companies
including Apple ( AAPL ) and Nvidia ( NVDA ) in the S&P 500 by
market capitalization.