by Huge Reward for Elon Musk
Tesla shareholders approved the largest compensation package in corporate history for CEO Elon Musk. About 75% of investors supported the deal, which could bring Musk up to $1 trillion over the next decade if the company achieves a series of ambitious market value and performance targets.
Conditions for Receiving the Reward
To receive the full amount, Musk must increase the automaker’s market value from $1.4 trillion to $8.5 trillion. It is also required to produce 20 million vehicles, a significant jump compared to the 8.5 million produced in the company’s entire history. Other conditions include reaching 10 million subscriptions for fully autonomous driving, launching 1 million robotaxis, and producing 1 million Optimus robots.
Payment Form and Deal Structure
Payments will be made in stages not in cash, but by granting Musk hundreds of millions of additional Tesla shares. This could increase his stake in the company from the current 13% to 29% over ten years. Tesla’s board of directors warned that without this deal, Musk could focus on other projects, such as SpaceX, Neuralink, and xAI.
Difficult Period for Tesla
The approval of the reward comes at a difficult time for Tesla. Sales have been weaker than expected in key markets, despite updates to the Model Y and Model 3. Prices have been repeatedly reduced, margins have shrunk, and competition from Western and Chinese electric vehicle manufacturers is intensifying.
Product and Reputation Problems
Cybertruck, despite significant media resonance, did not meet demand expectations. Furthermore, Tesla faces numerous lawsuits related to accidents involving driver assistance systems, and US regulators are investigating the safety of these systems. Research has also shown that Musk’s right-wing political views are costing the company billions of dollars due to lost sales.
Bet on Artificial Intelligence
Shareholders believe that Musk is the one capable of transforming Tesla into a leader in autonomous driving and artificial intelligence. If he manages to realize this vision, the trillion-dollar reward will no longer seem so fantastic. However, the question remains whether the results will justify such risks. This deal could become either a historic breakthrough or an example of excessive faith in one person, especially in the face of growing competition and the company’s internal challenges. Success will depend on real achievements, not promises, and the times when Tesla was the undisputed market leader may be a thing of the past.
