On Thursday, as Tesla CEO Elon Musk won a crucial shareholder vote and secured a compensation package worth $56 billion, small investor allies celebrated this victory despite opposition from major institutions.
Typically, small investors who hold a significant number of Tesla shares are not very enthusiastic about voting.
But this time was different. Many small investors campaigned for the restoration of the famed billionaire CEO's compensation on social media for weeks. They hoped the package would be reinstated after a Delaware judge nullified it in January, citing Musk's improper influence over the voting process.
“We have the best shareholder group,” Musk said at the shareholder meeting after the vote was announced. “Oh my God, I love you,” he told the investors at Tesla’s Austin, Texas factory, earning their enthusiastic cheers and applause.
A knowledgeable source told Reuters on Wednesday that the support of some major institutional investors, combined with retail shareholders' backing, was key to Musk's favorable vote. Earlier, the CEO had hinted at massive support for the proposal on social media platform X.
“Tesla's retail shareholders are not just passively adding stock to their portfolios. They are involved in the company's operations and drive its progress,” wrote Omar Qazi, from the @WholeMarsBlog account, in a post on X. “They vote. They tell their friends. It’s not just an investment; it's a movement,” said Qazi, who has over 476,000 followers.
On this issue, institutional investors were divided in their opinions.
