Key Events
👉 Elon Musk’s Payday: A 56 Billion Dollar Package?
Tesla’s annual shareholder meeting is tomorrow. The purpose of an annual shareholder meeting is to (i) elect directors, (ii) approve executive compensation, (iii) review financial performance, (iv) and ratify other proposals.
Tesla’s shareholders will vote on whether Musk’s $56B pay package is reasonable or not on Thursday. Elon Musk currently owns 13% of Tesla and the pay package will allow him to own 25%.
Tesla is particularly valuable to Musk since he redirects Tesla’s resources elsewhere in his empire. He uses Tesla’s engineers at X, plans to use the driving data in his new AI startup, and Tesla’s AI chips wherever he chooses. Importantly, it’s a public company which gives him liquidity.
The Delaware Court in 2018 approved Musk’s pay package, but this was later struck down by an equity court this year for being excessive. The main motivation behind the pay-package is so that Musk can focus more of his attention on Tesla.
Voting in shareholder meetings is primarily conducted through a process called proxy voting, which allows shareholders to vote on proposals and elect directors without being physically present at the meeting.
Before the meeting, the company sends shareholders a proxy statement, which provides detailed information about the matters to be voted on. This document includes background information on the issues, arguments for and against the proposals, and information about the candidates for the board of directors.
Along with the proxy statement, shareholders receive a proxy card. This card allows shareholders to indicate their voting preferences on the issues and proposals outlined in the proxy statement.
A quorum is the minimum number of shares that must be represented in person or by proxy for the meeting to proceed. If enough shareholders do not submit proxies or attend in person, the meeting may be postponed or adjourned until a quorum is present.
That will definitely not be the case. It will be a busy one tomorrow.
👉 The Chinese EV Trade War
Currently, Chinese EV manufacturers have to pay a 10% tariff for exporting to the EU.
According to the EU, Chinese EV companies take most of the market share as they have better technology and significant cost advantages. Relying on exports of EVs would mean that the domestic industry will not survive competition from China.
The EU will also announce the results of an investigation into Chinese EV subsidies. Why do subsidies matter? If the EV industry is receiving substantial subsidies from the government, that would be seen as an unfair trade practice since it allows the companies to sell their EVs at a lower price and take most of the market share.
The EU will most likely take a middle ground, imposing tariffs ranging between 25-30%.
Why not just buy Chinese EVs? After all, China is selling them at a lower price than domestic producers. Imposing tariffs would mean higher prices for consumers, defeating the purpose of climate protection. The EU still needs to protect a strategically important industry and does not want to rely on China for a major proportion of its EV supply.
👉 Raspberry Pi’s Stock Soars In The London Stock Exchange
Shares of Raspberry Pi rose about 36% above its targeted price in their initial trading day at the London Stock Exchange.
Shein, a Chinese online fashion company, valued at $66B and plans to float in London, giving the exchange a further boost.
Mergers and Acquisitions
Booz Allen Hamilton acquired PAR Government Systems, a maker of defense and space equipment, from PAR Technology.
Private Equity
Bain Capital offered to acquire Bapcor, an auto parts retailer, for $1.21B.
Venture Capital
Whizz, an e-bike subscription service for last-mile delivery, raised $12M in Series A funding.
