A group of Tesla shareholders are asking investors to vote against a compensation package worth more than $40 billion for CEO Elon Musk, saying that it's not in the electric vehicle maker's best interest. Tesla is struggling with falling global sales, slowing electric vehicle demand, an aging model lineup and a stock price that has tumbled 30% this year. The shareholder group, which includes New York City Comptroller Brad Lander, SOC Investment Group and Amalgamated Bank, said in a letter to shareholders that ratification of Musk's pay package would do nothing to promote Tesla's long-term growth and stability.
The fall in Tesla shares on Monday came after Chinese electric-vehicle maker Li Auto posted weaker-than-expected earnings.
Elon Musk now “needs Tesla (NASDAQ:TSLA) more than ever,” Morgan Stanley analysts stressed in a note released Monday.