Tesla Shareholders Back Elon Musk - Why It Matters
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Hey it's Dave. So last week at the Tesla Annual Shareholder Meeting, shareholders by a vast majority re-approved the 2018 compensation plan for Elon Musk and they approved the moving of Tesla's corporation to Texas. In this video I want to share what this means in the bigger picture.

First, by re-approving Elon's 2018 compensation plan, shareholders by a vast majority decided to get behind Elon and back him as the CEO of the company. It was interesting that it wasn't just a slight majority, but over 70% voted to re-approve the 2018 compensation plan.

In a lot of ways, it was a landslide victory in favor of Elon Musk. Tesla's shareholders are saying that they want Elon Musk to continue to lead the company and they approve of how Elon is going about creating shareholder value. Second, shareholders voted the way they did because they're recognizing the future of Tesla is an FSD and optimist.

Even though those two products are not currently bringing much into Tesla's bottom line, they have so much potential because of the value they bring to the end user. Of course, this is dependent on FSD reaching unsupervised FSD level and for Optimus to come to production and deliver on its value.

Third, the voting of the shareholder meeting also shows that shareholders are recognizing that the long-term matters more than the short-term for Tesla as a company. Short-term, Tesla has faced some recent headwinds regarding pricing their vehicles, margins, and profits.

However, shareholders are saying in a big way through this vote that they are prioritizing the long-term growth prospects of Tesla over any short-term headwinds. Fourth, the voting at last week's shareholder meeting opens the door for reinvigorated Elon Musk to be very aggressive with Tesla's growth plans.

Since Elon knows that the vast majority of shareholders are now behind him, he's able to press ahead and be more confident about his plans for Tesla. Recently, Elon tweeted that he's working on a master plan part four. With master plan part four, he'll probably talk about FSD and Optimus and the ways Tesla is going to really deliver value through AI and robotics. And this vote, I think, really helps Elon be more open and confident to share his optimism about Tesla's future.

Part of the reason is because it opens up the opportunity and the possibility for a new compensation plan to come up. And so that's my last point. And that is this past shareholder meeting opens up a possibility for the board of directors to draft a new compensation plan for Elon Musk.

Now this new compensation plan could be a five to ten year plan where Elon would need to reach certain milestones and it would be completely incentive based meaning he would have no salary otherwise unless he met certain milestones. By voters voting for the reincorporation of Tesla to Texas it allows Tesla to add a new class of shares and this new class of shares could give super voting rights to Elon Musk. In other words Elon Musk by achieving certain milestones could buy

buy additional shares of Tesla at a certain exercise price, but the shares that he gets could have more voting rights than let's say a typical share. This would allow Elon Musk to get to a higher percent of voting power. In the past, he shared that he'd like to get 25% so he could feel more confident that he has enough influence over Tesla, especially with Tesla's aggressive plans with humanoid robots and AI and robotics.

Overall, last week's Tesla shareholder meeting was significant in my opinion. The issues that the shareholders voted on showed solidarity with Elon Musk. It was appropriate for Elon Musk to open the shareholder meeting by saying, Tesla is opening a new book. And this new book, I think, is one of AI and robotics, where FSD and optimists are the real focus. I hope this has been helpful. We'll see you guys in my next video. Thanks.