Elon Musk has taken a significant step toward potentially becoming the world's first trillionaire after Tesla shareholders voted overwhelmingly in favor of a controversial pay package. During the meeting in Austin, Texas, over 75% of shareholders approved Musk's plan, which is based on ambitious performance targets to be achieved over the next decade.
The compensation plan, which could reward Musk with stock valued at $1 trillion, has sparked intense debate among investors about its implications and fairness, especially amid Tesla's recent struggles with falling sales and profits. Critics argue that the plan incentivizes reckless behavior, given Musk's divisive public persona and political ventures, including involvement in conspiracy theories.
In light of the shareholder approval, Musk urged investors to keep their faith, stating, Fantastic group of shareholders, and encouraged them to hang on to their stocks. This move is seen as a vote of confidence in Musk's vision for Tesla despite reports showing a concerning 50% drop in sales in Germany.
The structure of this pay package provides Musk with opportunities to incrementally increase his wealth by reaching specific operational and financial milestones, including a sixfold increase in Tesla's market value and the delivery of 20 million electric vehicles over ten years. Within this timeframe, he also aims to deploy over one million robots.
Despite the approval of the plan, it was clear that significant opposition existed. Institutional investors like Calpers and Norway's sovereign wealth fund criticized the remuneration package, suggesting that it fosters an unhealthy degree of dependency of the board on Musk's leadership.
Ultimately, while some investors celebrate the prospect of greater Tesla profitability under Musk's leadership, the risks associated with his management style and personal reputation remain center stage in discussions about the future of the electric vehicle giant.
