Tesla has just presented a new remuneration plan for its CEO, Elon Musk, which could reach a maximum amount of around $ 975 billion. If it is validated by shareholders, this package would make Elon Musk the first trillionaire in the world.
This exceptional remuneration is conditioned on specific technological and financial objectives. Among them, the deployment of 1 million robotaxis and 1 million Optimus humanoid robots, as well as an increase in the valuation of Tesla of several trillions of dollars.
Futuristic milestones to justify remuneration
The plan is not only based on automotive performance or sales growth. Tesla now inscribes her future in artificial intelligence and robotics. To reach all of its package, Musk will have to stay at the head of the company between 7 and 10 years old and succeed in these industrial and commercial deployments.
According to documents transmitted to shareholders, the achievement of these milestones would generate $ 7.5 trillions of value for investors.
A rehearsal of 2018, with amplified issues
In 2018, Elon Musk had already obtained a remuneration plan of more than $ 50 billion. But in 2023, a Delaware court canceled the agreement, believing that Musk had an excessive influence on the board of directors. Tesla appealed this decision.
This time, Musk and his brother Kimbal, both members of the council, officially challenged the process. The chairman of the council, Robyn Denholm, defended the proposal in a letter to the shareholders:
“We believe that Elon’s singular vision is vital to cross this critical turning point. We also recognize the formidable nature of this company and, consequently, the importance of having a leader who is not only capable and arranged, but enthusiastic to take up this challenge. »»
Context: between Chinese competition and weakened image
This project comes as Tesla crosses a delicate phase. Its sales are declining, notably in front of the Chinese manufacturers who dominate the electric vehicle market. In addition, Musk’s political visibility, marked by controversial positions, affects the reputation of the brand.
Despite this, Tesla retains a stock market valuation much higher than its industrial fundamentals, fueling the recurring debate on its status as the same stock.
A governance and strategy test
The shareholders’ vote will focus as much on remuneration as to Tesla’s future strategy. The company intends to turn into a major player in artificial intelligence and robotics, far beyond the automobile. But the concentration of power in the hands of Elon Musk again raises the question of governance.
If this plan is approved, Elon Musk could become the world’s first trillionaire, consolidating its control over Tesla and definitively directing its destiny towards AI and robots.
FAQ – Elon Musk, Tesla and the record remuneration plan
What is Elon Musk’s new remuneration plan at Tesla?
Tesla’s board of directors proposed an unprecedented plan for its CEO, Elon Musk. If it is validated by shareholders, it could reach up to $ 975 billion at most. This package would make musk the first trillionaire in the world.
What conditions should Elon Musk fill in to reach this remuneration?
Elon Musk will have to:
- Deploy 1 million robotaxis in the world.
- Produce 1 million Optimus humanoid robots.
- Increase it Tesla valuation of several dollars trillions.
- Stay CEO of Tesla during 7 to 10 years.
These objectives are supposed to generate almost 7.5 trillion of dollars of value For shareholders.
Why is this remuneration plan controversial?
This package is criticized for several reasons:
- Tesla faces a fall in sales and increased competition in China.
- Elon Musk is accused of exercising a disproportionate influence on the board of directors.
- His polarizing political positions weaken the image of the brand.
- In 2018, a plan $ 50 billion had already been granted to him, but canceled by the justice of Delaware in 2023.
What said Tesla to defend this decision?
In a letter addressed to shareholders, the president of the council Robyn Denholm said:
“We believe that Elon’s singular vision is vital to cross this critical turning point. We also recognize the formidable nature of this company and, consequently, the importance of having a leader who is not only capable and arranged, but enthusiastic to take up this challenge. »»
Can Elon Musk really become the first world trillionaire?
In theory, yes. If Tesla reaches the milestones set and if its valuation increases by several trillions of dollars, Musk could cross the symbolic threshold of personal fortune trillion.
In practice, these objectives are deemed extremely difficult to reachbecause they are based on a mass industrialization of Robotaxis and humanoid robots, technologies still far from a global commercial adoption.
