Tesla’s board has put forward a plan that could give Elon Musk paid worth more than 1 trillion if he reaches a set of highly ambitious targets. Musk, already one of the richest people in the world, would not get a salary or bonus. Instead, he would get Tesla shares and stages as he hits the given milestones.
The board is also asking investors to approve the proposal, saying that Elon Musk’s leadership is very important for the company’s future. Tesla’s chairperson said that innovation in both thinking could promote growth that seems impossible in the company today. She also said keeping Elon Musk in charge is key to Tesla‘s aim of becoming the most valuable company in history.
Tesla Includes Cars, Robots, And Hugh Company Growth
Tesla’s market value would have to increase eight times from its current level to $8.5 trillion. That would make Tesla worth more than double chip maker Nvidia, which is currently the most valuable company in the world.Â
Along with that, Musk must also meet some other goals, such as selling 12 million cars in 1 million AI robots. He also has to raise one of Tesla’s earnings measured by 24 times, and the plant splits the award into 12 parts, each due to a market milestone and an operational goal.
But there are some critics who are questioning this plan. Some point out that Tesla sales have recently gone down the fastest in 10 years. Others argue that Musk’s personal image and his comments outside of Tesla have hurt the company’s reputation.
Supporters And Critics Divided
Tesla’s board believes that rewarding this way will drive him to keep pushing the company to new heights. However, not everyone on the board agrees. Some investors believe that Elon Musk should be working to prove he can still guide Tesla without being offered such a big reward.
This proposal comes only weeks after Musk received $29 billion and shares from a previous award, which had earlier been reduced by a US court ruling it unfair to shareholders. There have been reports that the board once considered replacing Musk due to his potential involvement.
The upcoming shareholder vote will decide if he secures the chance at what could be the largest pay deal in corporate history.
FAQs
- What is Tesla’s proposal for Elon Musk?
A pay package worth $1 trillion, if he meets certain performance goals.
- What are some of the targets Musk must hit?Â
He must grow Tesla’s market value to $8.5 trillion, sell 12 million cars, and 1 million AI robots.
- Will Elon Musk get a salary or a bonus?Â
No, he will only get shares from Tesla if he achieves the milestone.
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