Tesla Shareholders Back $1 Trillion Musk Pay Plan Amid CEO Role Scrutiny

Tesla Shareholders Approve $1 Trillion Compensation Plan for Elon Musk Tesla shareholders voted overwhelmingly to approve a compensation plan that could pay Elon Musk more than $1 trillion over the next decade, provided the company meets a series of ambitious operational and market value milestones. According to the announcement at today's shareholder meeting, Musk secured more than 75% of the vote, paving the way for the largest compensation package in corporate history. Under the plan, Musk would receive 423,743,904 shares, awarded in 12 tranches of 35,311,992 shares each, as Tesla achieves various goals, including delivering 20 million vehicles, obtaining 10 million Full Self-Driving subscriptions, and putting 1 million robotaxis in operation. The company must also achieve a 400 billion adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and deliver 1 million AI robots. These targets are part of Tesla's broader strategy to cement its position as a leader in the electric vehicle and autonomous driving sectors. The compensation plan is contingent on Tesla's market value reaching $650 billion, a milestone the company has already surpassed. At the current market capitalization of over $1.2 trillion, Tesla's valuation is more than 85% higher than the threshold required to trigger the full payout. The plan's success will also depend on Tesla's ability to maintain its position as a leader in the electric vehicle market, where it faces increasing competition from established automakers and new entrants. Tesla's market value has more than doubled over the past year, driven by the company's expanding product lineup, improving profitability, and growing demand for electric vehicles. The company's stock price has risen by over 50% in the past six months, outperforming the broader S&P 500 index. Tesla's market capitalization now accounts for more than 2% of the total market capitalization of the S&P 500, a testament to the company's growing influence in the global automotive industry. The compensation plan has been criticized by some investors and analysts, who argue that it is overly generous and may create a conflict of interest for Musk, who has a significant stake in the company. Musk has responded to these concerns by stating that he will not use the compensation to fund his personal lifestyle, but rather to ensure that he has a strong influence over the company's future direction. The approval of the compensation plan is a significant vote of confidence in Musk's leadership and Tesla's growth prospects. The company's ability to meet the plan's ambitious targets will be closely watched by investors and analysts, who will be monitoring Tesla's progress in the electric vehicle and autonomous driving sectors. With a market capitalization of over $1.2 trillion, Tesla is now one of the largest and most influential companies in the world, and its future prospects will have a significant impact on the global automotive industry.