Labor Groups Demand States Block Elon Musk’s $29B Tesla Pay Package (TSLA)

Unions launch coordinated campaign against what they call 'corporate excess on steroids'

The Pushback

Labor organizations across multiple states are mobilizing to torpedo Elon Musk's proposed $29 billion compensation package at Tesla. They're urging state regulators and pension funds to vote against the measure—calling it a grotesque misallocation of corporate resources that could otherwise support worker wages or innovation.

Market Reactions

TSLA shares wobble as the news breaks—because nothing says 'stable investment' like a CEO pay debate turning into a political football. The package itself isn't just big; it's 'break the scale and then short the scale company' big.

Final Take

Musk’s payday hinges on approval from shareholders and silence from regulators. But with labor groups now roaring into the fray, that silence is getting expensive. And in classic Wall Street fashion, everyone's betting on the outcome—except the workers actually building the cars.

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This MOVE comes as Musk’s compensation continues to create controversy. In January 2023, a Delaware judge struck down Musk’s original 2018 pay package, valued at $56 billion, after calling it “unfathomable” and tainted by board conflicts. Despite that ruling, Tesla recently gave Musk 96 million new shares, worth about $29 billion, as a temporary measure while the case is being appealed. It is worth noting that Tesla shareholders had voted in favor of the original package in June 2023 and approved moving the company’s legal base to Texas, although legal appeals could still take months to resolve.

Nevertheless, the Tesla board insists that Musk’s leadership is essential, especially as the company shifts from making EVs to focusing more on AI and robotics. However, the unions and advocacy groups disagree. As a result, they are encouraging officials to reject any new compensation plan and to vote against directors who aren’t independent from Musk’s influence. Although Tesla hasn’t yet shared its official proxy statement for the upcoming shareholder meeting, these groups expect the controversial pay issue to appear on the ballot.

What Is the Prediction for Tesla Stock?

Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 15 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $307.23 per share implies 4% downside risk.