Tesla shareholders have given a significant endorsement to Elon Musk’s pay package, potentially worth nearly $1 trillion. The historic agreement was ratified by 75% of shareholders during the company’s latest annual meeting held in Austin, Texas.
Tesla’s Unprecedented Pay Deal
This record-breaking deal stipulates that Musk must elevate Tesla’s market valuation from approximately $1.4 trillion to a staggering $8.5 trillion over a specified timeframe. The compensation is linked to Musk achieving several ambitious targets. If successful, he would receive hundreds of millions of new shares.
Shareholder Approval and Reactions
- 75% of shareholders approved the pay package.
- The vote took place during the annual general meeting in Austin.
- Musk, already the richest person globally, celebrated the approval with enthusiasm.
The board argued that not approving this package could risk Musk’s departure from Tesla, which they believe the company could not afford. This concern contributed to the overwhelming approval from shareholders, which was met with loud applause in the meeting.
Musk’s Vision for Tesla
Following the announcement, Musk took the stage animatedly, dancing to the chants of his supporters. “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” Musk stated, emphasizing his excitement for the company’s direction.
Analysts noted Musk’s remarks focused on the Optimus robot, a shift that raised eyebrows among those who anticipated more attention towards enhancing Tesla’s electric vehicle production and full self-driving (FSD) features. Gene Munster, managing partner at Deepwater Asset Management, pointed out Musk’s priority on the Optimus robot rather than on current vehicle lines.
Future Goals and Challenges
Among the long-term goals Musk must achieve is deploying one million self-driving “Robotaxi” vehicles into commercial service. In response to concerns, Musk mentioned that Tesla is “almost comfortable” with drivers using their phones while driving, a statement that may raise regulatory eyebrows.
The company remains under scrutiny from U.S. regulators due to safety investigations linked to Tesla’s self-driving capabilities. Several incidents involving Tesla cars have resulted in crashes, including vehicles running red lights or driving on the wrong side of the road.
This unprecedented pay package and Musk’s ambitious goals signal a pivotal moment for Tesla’s future and its leadership under one of the industry’s most notable figures.
