Several Companies Under Elon Musk Billed Each Other Approximately $9 Million In Expenses, Raising Serious Questions About Corporate Governance
Portfolio Pulse from Bibhu Pattnaik
Tesla Inc. (NASDAQ:TSLA) disclosed financial transactions totaling $9.1 million between Elon Musk's companies, including payments to SpaceX, X (formerly Twitter), and The Boring Company, raising concerns about corporate governance. The disclosures, part of Tesla's annual shareholder meeting preparations, reveal a complex web of transactions. Amid these revelations and a 40% year-to-date drop in Tesla's stock price, investor confidence is challenged as Tesla seeks support for a $45 billion stock option package for Musk.
April 21, 2024 | 2:47 pm
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Tesla Inc. disclosed $9.1 million in transactions between Elon Musk's companies, raising corporate governance concerns and challenging investor confidence amid a significant stock price drop.
The disclosure of financial transactions between Elon Musk's companies, particularly in the context of a significant year-to-date stock price drop and ahead of a crucial shareholder meeting, raises concerns about corporate governance and investor confidence. This situation, combined with the challenge of securing support for Musk's substantial stock option package amid declining valuation, is likely to exert downward pressure on Tesla's stock in the short term.
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