Tesla approves $1 trillion pay package for Elon Musk

Billionaire Elon Musk. (Photo: AFP/TTXVN)

Shareholders of electric car maker Tesla on November 6 voted in favor of a huge compensation package for CEO Elon Musk, which could reach $1,000 billion, to ensure he continues to lead the company as it develops breakthrough technologies in artificial intelligence (AI) and robotics.

Tesla shares rose more than 3% in after-hours trading after the vote. Shareholders also re-elected three board members and approved a plan to replace Musk’s old compensation package, which has been stalled by litigation in Delaware.

Analysts said the results were a positive sign for Tesla shares, even though the brand's reputation has been somewhat affected by Musk's controversial political statements. The fact that he was allowed to exercise all of his voting rights, equivalent to 15% of the shares, after Tesla moved its headquarters to Texas, also helped the plan pass despite opposition from some major investors, including Norway's sovereign wealth fund.

Tesla’s board had warned Musk he could leave the company if his compensation package wasn’t approved, and the vote is expected to help reassure investors concerned about his split focus between Tesla, aerospace company SpaceX, and artificial intelligence company xAI.

To receive his full compensation, Musk must help Tesla achieve a series of ambitious goals, including producing 20 million electric cars, deploying 1 million self-driving taxis, and selling 1 million robots over the next decade, along with a core profit of up to $400 billion. The company's market capitalization must also increase from its current level of about $1.5 trillion to $2 trillion, and aim for the $8.5 trillion mark.

Under the new plan, Musk could receive up to $878 billion in Tesla stock over 10 years. The $1 trillion cap would only be reached if he met all of the targets and returned some of the stock value to the company.

Source: https://vtv.vn/tesla-phe-chuan-goi-luong-1000-ty-usd-cho-elon-musk-100251107064300634.htm