What's happened
Tesla is seeking shareholder approval for Elon Musk's $56 billion pay package after a US judge rejected the deal. The company is also proposing to move its corporate headquarters to Texas and has announced layoffs of over 10% of its global workforce.
Why it matters
The outcome of the shareholder vote on Musk's pay package will have significant implications for Tesla's future direction and Musk's role within the company. The proposed move to Texas and the layoffs signal a period of change and potential restructuring within the electric carmaker.
What the papers say
The New York Times highlights the board's unwavering support for Musk, while Al Jazeera emphasizes the challenges Tesla is facing with falling vehicle deliveries and share prices. Business Insider UK focuses on the board's perspective on the pay package, citing it as critical for Tesla's success.
How we got here
In 2018, shareholders approved a massive pay package for Musk, which was later voided by a Delaware judge for being excessive. The current proposal aims to reapprove this package, alongside a move to relocate Tesla's corporate home to Texas.
Common question
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Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale and, through its acquisition of SolarCity, solar
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Elon Reeve Musk FRS is an engineer, industrial designer, technology entrepreneur and philanthropist. He is the founder, CEO, CTO and chief designer of SpaceX; early investor, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-foun
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Robyn M. Denholm is an Australian business executive. In November 2018, Denholm succeeded Elon Musk as chair of Tesla, Inc.
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Kathaleen McCormick is an American lawyer and chancellor. Noted for being an effective corporate litigator, in 2018 McCormick was successfully nominated to the Delaware Court of Chancery by Governor John Carney.