Tesla Shareholders Approve $1 Trillion Compensation Package for Elon Musk
Tesla shareholders have approved a $1 trillion compensation package for Elon Musk, which could make him the world's first trillionaire if certain ambitious milestones are met. The plan aims to boost Tesla's market value from about $1.4 trillion to roughly $8.5 trillion. Musk, who holds approximately 12.5% of Tesla, currently has a stake worth around $461 billion.
Key targets of the compensation package include delivering 20 million vehicles, obtaining 10 million self-driving car subscriptions, producing 1 million humanoid robots, and deploying 1 million robotaxis. The shareholder vote took place on Thursday, and if the goals are achieved, it would represent the largest corporate payout in history.
Investors remain supportive of the plan despite Musk's controversial public profile and previous alignment with former President Donald Trump. US investors often back high-profile innovators, valuing Musk's leadership and technological vision as essential to Tesla's future. Tesla shares have risen about two-thirds since May, helped by strong third-quarter vehicle deliveries that beat estimates and stimulated by US electric vehicle tax credits, although sales in Europe have lagged.
Analysts caution that there are risks involved: Tesla's core automotive business may have peaked, and the autonomous driving and robotics initiatives face stiff competition and execution challenges. Additionally, concerns persist regarding potential brand damage amid Musk's political activities. Nonetheless, the compensation plan reflects confidence in Musk's pivotal role in driving Tesla's continued growth and innovation.
