Tesla Shareholders Greenlight Musk's Massive Pay Package
Elon Musk's record-breaking pay package, potentially worth nearly R14 trillion (approximately £760 billion), has been approved by Tesla shareholders at the company's annual general meeting in Austin, Texas. The unprecedented deal, securing over 75% of the votes, sparked enthusiastic applause from attendees.
The agreement mandates Musk to significantly increase Tesla's market value over the next decade. If he achieves these ambitious targets, he will be rewarded with hundreds of millions of new shares.
Controversy and Justification
The sheer scale of the potential payout has drawn criticism from various quarters, including Norway's sovereign wealth fund, a major Tesla investor, which voted against the package. Concerns were raised about the size of the award, potential dilution, and lack of mitigation regarding “key person risk.” Some critics even likened the plan to income inequality, drawing comments from prominent figures.
However, the Tesla board defended the decision, arguing that Musk's departure would be detrimental to the company and that the incentive is necessary to keep him focused. They emphasized his visionary leadership and his crucial role in steering Tesla towards a future dominated by self-driving cars and advanced robotics.
Musk's Vision: Beyond Electric Vehicles
Following the approval, Musk addressed the audience, expressing his excitement for the future of Tesla. He highlighted the Optimus robot project, hinting at a broader vision beyond electric vehicles. This shift in focus has sparked debate among analysts, with some questioning whether Musk is prioritizing robotics over the core EV business.
Musk needs to increase Tesla's market value to $8.5 trillion from $1.4 trillion, and get a million self-driving Robotaxis into commercial operation to get his full payout.
- Tesla's share price has soared despite Musk's political statements
- The agreement has drawn criticism due to its gargantuan size.
- Musk is expected to usher in a Tesla-dominated future in which hundreds of thousands of self-driving Tesla cars will ferry people.