The deal is a done deal: Tesla boss Elon Musk has the prospect of a huge block of shares worth a trillion dollars.
More than 75 percent of Tesla shareholders voted in favor of the compensation plan Electric car-Manufacturer has to meet various goals so that Musk gets the shares. Musk had threatened to resign as CEO of Tesla if the package was not approved.
This package could be worth around a trillion US dollars (equivalent to 871 billion euros) – at least if the car manufacturer’s stock market value is 8.5 trillion dollars in ten years. That would be almost six times as much as now. With such an increase in value, the value of the shares Musk already owns would also break the trillion mark. The 54-year-old is already the richest person in the world with an estimated fortune of more than $470 billion.
Other requirements for receiving the shares include that Musk remains in the executive suite for the decade – and Tesla has a million robotaxis in use and delivers a million AI robots.
The plan’s acceptance was not guaranteed: among others, two influential consulting firms that make recommendations for shareholders spoke out against it.
Target 20 million Teslas sold
In total, Musk could get up to 423.74 million Tesla shares – in twelve stages, which are usually linked to increments of $500 billion in market value. In addition, there are the business goals such as the delivery of 20 million Teslas with a market value of two trillion dollars. An even bigger hurdle could be to later break the $400 billion mark in adjusted earnings before interest, taxes, depreciation and amortization in addition to the $6.5 trillion market value and stay above it.
Chairman of the Board of Directors Robyn Denholm emphasized that Musk would be left empty-handed if Tesla did not achieve its goals. The tech billionaire himself said that more than the money, he was interested in increasing his Tesla stake to 25 percent and thereby securing his influence in the company.
Focus on robots and robotaxis
However, Tesla – the electric car pioneer that caused the industry to undertake an expensive race to catch up a few years ago – appears disenchanted and is heading for its second year of declining sales. Musk, in turn, argues that Tesla’s future lies in self-driving robotaxis and humanoid robots.
This is how Tesla shares react to Musk’s trillion dollar deal
After hours, Tesla shares on the NASDAQ were 0.46 percent lower at $442.57.
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