In a controversial twist, Elon Musk, CEO of Tesla, publicly criticized the California Public Employees' Retirement System (CalPERS), a shareholder group that has been vocal in its opposition to his $56 billion pay package. Musk took aim at CalPERS, pointing out how the group had multiplied its investment due to his leadership, yet still chose to vote against his compensation plan.

According to filings, CalPERS owned 183,343 shares of Tesla stock in 2018 when the share price was a modest $14.90. However, since then, Tesla's stock price has skyrocketed, increasing by more than 11 times. As a result, CalPERS' Tesla stake in that investment alone has surged from $40 million to approximately $500 million, a substantial return on their initial investment.

Unfazed by the opposition, Musk expressed his disappointment in CalPERS, stating, "CalPERS broke the deal. Shame on them, they have no honor." Despite being at odds with their view on his pay package, Musk acknowledged that CalPERS now holds 6,738,863 shares of Tesla stock worth approximately $1.7 billion.

The question of Musk's compensation has become a significant issue on the agenda for the upcoming Tesla Shareholder Meeting. Various firms, shareholders, and investment groups are currently grappling with what they believe is the right course of action, with a strong contingent of retail investors adamant on supporting the CEO's pay package. Notably, the $56 billion package was approved by shareholders back in 2018, only to be later denied by a Delaware Chancery Court judge earlier this year.

The fallout from the court ruling has prompted Tesla to contemplate leaving the State of Delaware altogether, with Texas being a likely candidate for incorporation. As the vote draws nearer, the controversy surrounding Musk's compensation package has resulted in a multitude of conflicting viewpoints.

In recent news, firm Glass Lewis also announced its intention to vote against Musk's pay package. However, there are other firms that are inclined to support Musk, keeping him in his position as CEO and leader of Tesla. Many shareholders argue that since the package was previously approved, it should be upheld once again.

To guarantee that Musk receives his $56 billion compensation, Tesla is sparing no effort to rally shareholder support. The company has implemented various strategies, including offering potential factory tours featuring Musk and Chief Designer Franz von Holzhausen, to persuade shareholders to vote in favor of the approval.

As the debate unfolds, it remains to be seen whether Tesla shareholders will ultimately approve Musk's pay package. The outcome of the vote will have significant implications for the company's future, particularly regarding the potential departure of its visionary CEO.