MAJOR TESLA INVESTOR SELLS $585,000,000 OF HIS SHARES
According to Forbes, entrepreneur Elon Musk is the richest man in the world, with a net worth of over $400 billion. However, in 2018, a record-breaking $56 billion compensation package for him was first approved by Tesla shareholders. Under the terms of the agreement, Musk could have purchased up to 304 shares for $23.34, provided he fulfilled specific performance targets. For comparison, the current price of a Tesla share is $403 per share.One shareholder filed a lawsuit, arguing that the pay package was unfair and that the board had misled them, even though the majority of shareholders had approved the pay deal. Since then, the Supreme Court has denied Musk's appeals twice, citing Tesla's "unprecedented theories go against multiple strains of settled law," according to Delaware Chancellor Kathaleen McCormick.Investors were so upset by the proposed compensation package that one Dutch company sold all of its $585 million worth of shares in the electric vehicle company. According to Bloomberg, one of the biggest pension funds in Europe, Stichting Pensioenfonds ABP, sold all 2.8 million of its shares in September, which were worth $585 million at the time. An ABP representative told the NL Times that Musk's compensation agreement was "by no means the only reason" for the divestment, adding that "we cannot and do not need to invest in everything."According to Fortune, ABP's stake in Tesla was only about a tenth of the value of its other US company holdings. As of the end of September, ABP "owned €5.6 billion" in the technology company Nvidia. Meanwhile, its investments in Microsoft and Apple were even larger at €6.0 billion and €6.3 billion respectively. Following Donald Trump's election in early November, Tesla's stock soared to a record high of $479.86 in mid-December, months after ABP sold its shares. ABP denied to the media that the action was "politically motivated."
According to Forbes, entrepreneur Elon Musk is the richest man in the world, with a net worth of over $400 billion. However, in 2018, a record-breaking $56 billion compensation package for him was first approved by Tesla shareholders. Under the terms of the agreement, Musk could have purchased up to 304 shares for $23.34, provided he fulfilled specific performance targets. For comparison, the current price of a Tesla share is $403 per share.
One shareholder filed a lawsuit, arguing that the pay package was unfair and that the board had misled them, even though the majority of shareholders had approved the pay deal. Since then, the Supreme Court has denied Musk's appeals twice, citing Tesla's "unprecedented theories go against multiple strains of settled law," according to Delaware Chancellor Kathaleen McCormick.
Investors were so upset by the proposed compensation package that one Dutch company sold all of its $585 million worth of shares in the electric vehicle company. According to Bloomberg, one of the biggest pension funds in Europe, Stichting Pensioenfonds ABP, sold all 2.8 million of its shares in September, which were worth $585 million at the time. An ABP representative told the NL Times that Musk's compensation agreement was "by no means the only reason" for the divestment, adding that "we cannot and do not need to invest in everything."
According to Fortune, ABP's stake in Tesla was only about a tenth of the value of its other US company holdings. As of the end of September, ABP "owned €5.6 billion" in the technology company Nvidia. Meanwhile, its investments in Microsoft and Apple were even larger at €6.0 billion and €6.3 billion respectively. Following Donald Trump's election in early November, Tesla's stock soared to a record high of $479.86 in mid-December, months after ABP sold its shares. ABP denied to the media that the action was "politically motivated."
Musk, who has been confirmed as the head of the new Department of Government Efficiency (DOGE), has been a vocal supporter of President-elect Trump. While it isn’t technically a government department, it’s reported that DOGE will act as an outside advisor to Trump’s administration. Musk has already pledged to cut the federal budget by trillions of dollars in his new position.
Regarding the appointment, Trump stated that DOGE will assist his team in "restructuring federal agencies, cutting unnecessary spending, slashing excessive regulations, and dismantling government bureaucracy". Musk has reportedly suggested he would donate $100 million to the far-right, anti-immigration party Reform and called on King Charles to dissolve parliament to influence politics in the UK.