Tesla’s shareholders have approved a compensation package for CEO Elon Musk that could reach nearly $1 trillion, a record-breaking sum.
The unprecedented agreement garnered approval from 75% of Tesla shareholders who cast their votes at the company’s annual general meeting on Thursday.
The deal stipulates that Musk, already recognized as the world’s wealthiest individual, must significantly increase the electric vehicle manufacturer’s market capitalization over several years. Successful achievement of predetermined targets would result in his receiving hundreds of millions of new shares.
While the scale of the compensation package has sparked controversy, Tesla’s board has maintained that its approval is crucial to retaining Musk, arguing that his departure would be detrimental to the company.
The announcement was met with enthusiastic applause from attendees at the meeting held in Austin, Texas. Musk took to the stage, celebrating amidst chants of his name.
“What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he stated.
“Other shareholder meetings are snoozefests but ours are bangers. Look at this. This is sick,” Musk added.
Milestones for Musk include elevating Tesla’s market value to $8.5 trillion from its current standing of $1.4 trillion at the time of reporting.
Additionally, he would need to deploy one million self-driving “Robotaxi” vehicles for commercial operations.
However, his initial statements on Thursday emphasized the Optimus robot, potentially disappointing some long-term analysts and Tesla observers who advocate for Musk to prioritize revitalizing the company’s electric vehicle division.
“Let it sink in where Musk’s head is at,” wrote analyst Gene Munster, managing partner at Deepwater Asset Management, on X.
“His vision of the ‘new book’ starts with Optimus. No mention of cars, FDS and robotaxi yet.”
Later in his address, Musk did reference FSD, an abbreviation for full self-driving, indicating the company was “almost comfortable” allowing drivers to “text and drive essentially.”
He also compared dealing with regulatory bodies to navigating a Franz Kafka novel.
U.S. regulators are currently investigating Tesla’s self-driving feature following multiple incidents involving vehicles running red lights or driving on the wrong side of the road.
Some of these incidents have resulted in accidents causing injuries.
Tesla shares experienced a slight increase in after-hours trading, having already risen by more than 62% over the preceding six months.
Analyst Dan Ives, a known long-time supporter of the company, described Musk as “Tesla’s biggest asset” in a note released following the vote.
“We continue to believe that the AI valuation is getting unlocked, and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun,” Mr. Ives added.
SNP MP Pete Wishart says he is seeking legal advice over the “disturbing” AI-generated social media post.
Jared Isaacman’s initial nomination was withdrawn by the president in May during his high-profile feud with Elon Musk.
The car-maker is lobbying fiercely for the pay package, which is being voted on ahead of its AGM on Thursday.
A bright object illuminated the skies in County Kildare on Wednesday night which has sparked much intrigue.
According to experts, the object was likely the debris of an Elon Musk SpaceX Falcon 9 rocket.