Citing concerns over the plan's "excessive size," Glass Lewis believes that such a payment package could have a dilutive effect on Tesla's shareholders, as reported by Bloomberg.

The advisory firm also expressed apprehension regarding the extensive amount of time Musk dedicates to his numerous external projects, which were well-documented prior to the 2018 grant and further expanded with his high-profile acquisition of X, formerly known as [name of company]. These unrelated ventures raise questions about the executive's ability to focus on Tesla's core business.

The vote on the compensation plan comes after a Delaware judge invalidated it in January, despite initial approval from investors in 2018. Consequently, Tesla has called for a new vote to ratify the previously sanctioned package. This situation has left many shareholders divided, particularly in the wake of multiple rounds of layoffs at the company.

The upcoming annual shareholders meeting, scheduled for June 13th, will be a crucial event for Tesla. The company's board has recommended voting in favor of ratifying Musk's pay package, as well as approving the move to re-incorporate the automaker in Texas.

Recognizing the significance of this vote, Tesla has been actively campaigning to sway shareholders in favor of the proposals. The company has launched advertising campaigns across various platforms and even established a dedicated website to provide detailed instructions on how investors can cast their votes. The board's support of the compensation plan comes amidst Musk's threat to pursue AI and robotics development outside of Tesla if he fails to acquire enough shares to secure about 25 percent voting control within the company.

With the shareholders meeting just around the corner, stakeholders must carefully consider Glass Lewis's verdict before making their decision. The fate of Musk's compensation plan rests in the hands of Tesla's investors, who must weigh the potential dilutive effects and examine Musk's commitment to the company amidst his other ventures.