Proactive Investors - Tesla Inc (NASDAQ:TSLA) has written to shareholders asking them to help "fix" the issue of boss Elon Musk's pay after a Delaware judge blocked his US$56 billion bonus package.
The electric vehicle maker is asking its investors to approve the company changing its state of incorporation from Delaware to Texas, as Musk proposed following the legal decision at the end of January.
"We do not agree with what the Delaware Court decided, and we do not think that what the Delaware Court said is how corporate law should or does work," Tesla chair Robyn Denholm wrote.
“So we are coming to you now so you can help fix this issue.”
Denholm urged shareholders to reinstate their vote and approve ratification of Musk's compensation plan, which was first approved by shareholders in 2018.
Based on the company's closing share price yesterday, which has fallen over 37% since the start of the year, Musk's shares package would be worth $47.8 billion.
After the court decision, Musk launched a poll on his X/Twitter platform, where the results supported a move to Texas, with Denholm's letter also suggesting that four of Tesla’s top 10 institutional shareholders also felt the ruling was unfair.
First-quarter earnings next week are expected to show lower profits and the company has been cited as a high-risk prospect by some analysts.
This week, Tesla announced a 10% reduction of its workforce as it looks to cut costs in the face of fierce competition and de-prioritisation of its plans to build a cheaper 'Model 2' vehicle.