Tesla shareholders approve USD1 trillion pay deal for Musk
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The news: Tesla shareholders have approved a pay package for CEO Elon Musk that could grant him up to USD1 trillion ($1.5 trillion) in stock over the next decade, with more than 75% voting in favour.
The numbers: The award consists of 12 stock tranches and would only be granted if Musk meets a series of operational and financial targets, including raising Tesla’s market value from USD1.1 trillion to USD8.5 trillion, deploying one million robotaxis, and selling one million humanoid robots. If all targets are met, Musk’s voting control in Tesla could rise to 25%.
Musk’s 2018 pay package, which shareholders supported again last year, is still tied up in a legal dispute and under appeal after a Delaware judge struck it down.
Shareholders also gave the board permission to invest in Musk’s AI startup xAI, although the company said there were “a significant number of abstentions.”
What they said: Musk described the shareholder meeting as a “cyberpunk night club,” while Tesla shares rose 1.6% in after-hours trading following the vote.
“What we are about to embark upon is not merely a new chapter of the future of Tesla but a whole new book,” Musk said as he took the stage at the meeting, shortly after hearing his pay package had been approved.
He added Optimus, Tesla’s humanoid robot, could “eliminate poverty” and prevent crime. He outlined a tentative rollout timeline for the robot’s production, estimating once productions cales to one million units annually, the cost per robot would be around USD20,000 in today’s dollars.
The sources: Tesla, Business Insider
