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Tesla is expected to release
Photograph by Spencer Platt/Getty Images
Only
Tesla CEO Elon Musk can make an annual proxy statement exciting. With
Tesla’s 2022 proxy statement possibly arriving as soon as Monday, there will be a couple key things that investors will want to see.
A proxy statement for an annual meeting outlines business that shareholders need to vote on, along with providing details about management compensation. Typically, the proxy statement isn’t as big a deal as earnings release or annual reports.
That isn’t the case for Tesla (ticker: TSLA) shareholders this year, however, thanks to Musk. He’s buying
Twitter (TWTR) and using Tesla stock to fund part of the purchase.
Musk sold some stock outright and raised about $8.5 billion in cash. He is also pledging about $63 billion in stock to secure a $12.5 billion loan.
According to Tesla’s 2021 annual report, the 2022 proxy is slated to be “filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2021.”
That puts the filing on or about Monday, May 2. But Tesla (ticker: TSLA) could also delay the statement filing. The company didn’t return a request for comment about its plans.
For investors, Musk’s pledged stock and any details about a possible stock split will be in focus.
Pledged Stock
Pledged stock is one of the two things investors will likely search the document for.
Musk has borrowed cash against his Tesla holdings before. The 2021 proxy statement says Musk has pledged more than 88 million shares as collateral for personal borrowing.
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