Tesla this week offered a whole lot of latest information to investors ahead of the annual shareholder meeting in June, including a rundown of assorted expenses that Elon Musk’s firms have charged one another.
At firms where he serves as an officer, director or major shareholder, the overall amount of cross-charges since last 12 months was $9.1 million, regulatory filings show.
In 2023 and thru February 2024: SpaceX paid Tesla $2.9 million; Tesla paid SpaceX $800,000; X paid Tesla $1.02 million; Tesla paid X $280,000; Tesla paid the Boring Company $1.2 million; and Tesla paid an unnamed security firm owned by Musk $2.9 million. And it goes on and on.
Details on the assorted editions are scarce. Musk’s security company billed Tesla $2.4 million in 2023 and one other $500,000 through February 2024 for Musk’s own protection, which represented only a portion of the overall cost of his security spending, the corporate said. Similarly, Tesla bought promoting
According to the documents, Tesla and Musk have often moved managers in his various firms as he seeks to develop further. For example, after buying the social network now referred to as X, he brought in executives with previous stints on the Boring Company, Tesla, Neuralink and artificial intelligence startup xAI.
For an organization the scale of Tesla – a market cap of $460 billion, down from a peak of greater than $1 trillion in 2021 – the variety of transactions involving firms linked to the CEO is , unusual. According to the corporate, Tesla’s investors, which include numerous private shareholders, have largely at all times viewed Musk as a loner to be followed.
But Tesla needs a turnaround. The stock price has fallen 40% for the reason that starting of the 12 months and the corporate may disappoint investors even further on April 23 when it reports first-quarter results. Then in June, Tesla’s board will ask investors to re-approve Musk’s $45 billion stock options package, at a time when the corporate has lost $700 billion in value. It even launched a web site for investors to support the project.
Some of this positive investor sentiment could have began to alter. A report last week from the publication on electric vehicles and sustainable energy Electrics revealed that Leo Koguan, Tesla’s largest private investor and self-proclaimed “Elon fanboy,” would oppose Musk’s pay package within the June shareholder vote. Koguan can be reportedly refusing to support two board members up for re-election: Musk’s brother Kimbal Musk and James Murdoch, son of media tycoon Rupert Murdoch.
Koguan is the founding father of private IT company SHI International and has invested $3.5 billion in Tesla, in line with the report. Still, Koguan was unable to schedule a gathering with the board to debate his concerns about Tesla operating in the general public company space although it looks more like a non-public, family-owned company.
