According to a Bloomberg report on Monday, longtime Tesla shareholder Baillie Gifford, a Scottish fund management company, plans to support Elon Musk and vote in favor of his $56 billion compensation package, citing unnamed sources.
Shareholders are set to vote on Musk's compensation package on June 13. The package was approved in 2018 but was later overturned and invalidated by a Delaware judge, requiring Tesla to seek re-approval.
According to sources, Musk has already secured Baillie Gifford's support. The company has been holding Tesla stock for over a decade and was once Tesla's second-largest shareholder before reducing its stake to 0.5%. Sources say that Musk has met the ambitious targets set in 2018.
Baillie Gifford declined to comment on the matter to Bloomberg.
However, not everyone supports Musk's $56 billion compensation package.
Institutional Shareholder Services has recommended shareholders vote against the compensation package, and Norway's sovereign wealth fund, Norges Bank Investment Management, also stated last week that it will vote against it.
In a recent report, Wedbush noted that this compensation package controversy is just one of many burdens pressing on Tesla's stock. However, approving the package would be a key step in eliminating this "distraction." Currently, many are skeptical about Tesla's demand amid fierce competition in China and a slowdown in electric vehicle sales.
