Tesla Spends On Musk's Pay Vote Ads, But Ross Gerber Feels EV Giant Could Advertise Weekly Sales Instead
Portfolio Pulse from Anan Ashraf
Tesla Inc is using advertisements to encourage shareholder votes on CEO Elon Musk's previously rescinded $55 billion pay package and the company's potential relocation from Delaware to Texas. Despite traditionally avoiding advertising, Tesla has recently explored ads on various platforms, including Google and X, for this purpose. The move comes amid criticisms, including from investor Ross Gerber, for not advertising its product sales while focusing on Musk's pay package promotion.
May 14, 2024 | 12:17 pm
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Tesla's advertising for Musk's pay package vote and potential state relocation could influence shareholder perception and potentially impact stock price due to the mixed reactions from investors and the public.
The use of advertising for internal governance matters, such as Musk's pay package and state relocation, is unusual for Tesla and could lead to mixed reactions among investors. While some may view it as a positive step towards transparency and shareholder engagement, others, like Ross Gerber, see it as a misallocation of resources. This divergence in investor sentiment could lead to short-term volatility in Tesla's stock price, although the long-term impact remains uncertain.
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