Tesla CEO Elon Musk is facing hurdles as the electric car company seeks to reinstate a $56 billion compensation package for him. The package was rejected by a judge in Delaware earlier this year, leading to uncertainty about Musk’s pay in the future.

In a surprising turn of events, Tesla plans to move its corporate home from Delaware to Texas. This move also coincides with Musk already relocating Tesla’s headquarters to Texas. Shareholders will have a say in both decisions as they vote on the issues during the annual meeting on June 13.

The company has been on a rollercoaster ride with record deliveries of over 1.8 million electric vehicles worldwide in 2023. However, Tesla’s shares have taken a hit, losing more than one-third of their value this year. Musk’s ambitious plans to pursue artificial intelligence and robotics at the company have raised concerns among analysts about the company’s growth and his future compensation.

In a bid to address the concerns, shareholders will also cast a nonbinding advisory vote on 2023 executive compensation. If there is significant opposition to future pay packages, the board has committed to evaluating the concerns and taking necessary actions.

To add to the challenges, Tesla has cut prices on some models by as much as $20,000, impacting profit margins. The company has also announced layoffs of about 10% of its workforce, further adding to the uncertainty surrounding its future.

Despite the hurdles, Musk remains resolute in his demands to own 25% of Tesla shares to further his vision for the company. As shareholders gear up to vote on the compensation package and future executive pay, all eyes are on Tesla to navigate through these challenges and continue its path towards innovation in the electric vehicle market.