Tesla Urges Stockholders to Vote on Key Proposals

Tesla has called on its stockholders to vote on two crucial proposals ahead of the Annual Meeting of Stockholders on June 13.

The proposals involve ratifying the 2018 CEO Performance Award and reincorporating Tesla in Texas. Tesla emphasizes that these measures are vital for protecting stockholder rights and the value of their investments.

Tesla’s official communication on X today highlighted the importance of these votes: “Protect your rights as stockholders & protect the value of your investment by voting FOR the ratification of the 2018 CEO Performance Award & FOR reincorporating Tesla in Texas.”

CEO Elon Musk added, “The Tesla team put this together of their own volition (I did not ask for it). Thanks!”

We have put forward two especially important proposals for our Annual Meeting of Stockholders—and we need your vote.

Protect your rights as stockholders & protect the value of your investment by voting FOR the ratification of the 2018 CEO Performance Award & FOR Reincorporating… pic.twitter.com/ONmB7oZfyM

— Tesla (@Tesla) May 20, 2024

2018 CEO Performance Award

• Stockholder Approved: The award, approved by stockholders in 2018, incentivized Musk to create substantial value, resulting in a nearly 1,100% total shareholder return over six years.
• Court Decision: A Delaware Court recently ordered the plan to be canceled, disregarding the original stockholder vote.
• Alignment: The plan ensures Musk holds shares for five years post-exercise, aligning his interests with long-term stockholder benefits.

Reincorporation in Texas

• Stockholder Rights: Tesla argues that Delaware’s legal framework has not respected stockholder votes, whereas Texas offers a more supportive legal environment.
• Texas Presence: Tesla’s headquarters, largest manufacturing facility, and a significant workforce are located in Texas, making it a strategic move.
• Stockholder Feedback: Tesla has received substantial support from stockholders to move its incorporation to Texas.

Stockholders can vote online, by QR code, phone, or mail. Tesla underscores that the future value creation and protection of stockholder rights are at stake, urging all stockholders to participate in the vote.

For more details, visit the Vote Tesla website at votetesla.com