Tesla shareholders outside the U.S. may not be able to vote for Elon Musk's $56 billion pay deal due to technical issues, the Financial Times reported Sunday. Tesla stock was little changed early Monday.
Investor platforms lack adequate cross-border systems for shareholder votes. That affects tens of thousands of overseas investors, with some $17 billion, or roughly 3% of Tesla shares, at stake.
Tesla shareholders have several key items to vote on, including Musk's pay deal and a plan to reincorporate the EV giant in Texas, from Delaware.
Tesla has a relatively high share of retail investors, at roughly 30%. But institutional investors have grown in importance.
Proxy advisory firms Glass Lewis and Institutional Shareholder Services have recommended voting no on Musk's pay deal, with the former also opposing the move to Texas. That could sway institutional investors, some of whom have said they oppose the pay deal and Texas move.
Musk's pay deal needs a majority of voting shares, excluding stakes owned by Elon Musk and his brother Kimbal. Reincorporating in Texas needs a majority of shares outstanding.
The shareholder meeting is on June 13, but voting is already underway.
Tesla Stock
Tesla stock nudged higher early Monday after edging down 0.65% to 178.08 last week. Shares are holding the 50-day line. TSLA stock is still one of the S&P 500's worst performers this year, down 28.3%.
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