Tesla shareholders have just opened a golden door for Elon Musk, setting him on a path to potentially become the world's first trillionaire. The vote in Austin, Texas, has sparked both admiration and concern among those who see Musk as a visionary or a liability.
On Thursday, over 75% of voting shareholders at Tesla’s headquarters approved a staggering pay package that could grant Musk stock worth $1 trillion if he meets specific performance targets over the next decade, as reported by PBS NewsHour. This decision comes after intense debate over his leadership and the sheer scale of the compensation.
The approval marks a significant triumph for Musk, despite Tesla grappling with declining sales, shrinking market share, and profits partly tied to his polarizing political stances and public statements. Investors seem to believe he remains the man to steer the company through turbulent waters, recalling how he rescued Tesla from near collapse years ago.
The pay package isn’t a blank check; it demands Musk achieve monumental goals, like nearly sextupling Tesla’s stock market value. He must also deliver 20 million electric vehicles in a decade, more than doubling the company’s total output since its founding.
Additionally, Musk is tasked with deploying over 1 million human-like robots, a so-called “robot army” he claims will revolutionize work and home life. Starting from zero, this goal seems more science fiction than business plan, raising questions about whether such promises are grounded in reality.
Intermediate steps in the package could still net him billions in new shares long before reaching the ultimate targets. This structure might see him surpass historical tycoons like John D. Rockefeller, whose peak wealth, adjusted to today’s dollars, stood at $630 billion per Guinness World Records.
Despite the shareholder backing, opposition came from heavyweights like Calpers and Norway’s sovereign wealth fund, alongside corporate watchdogs who decried the package’s excess. Musk didn’t mince words, branding critics like Institutional Shareholder Services and Glass Lewis as “corporate terrorists” during a recent investor meeting.
Detractors argue the Tesla board is too closely tied to Musk, unable to rein in his erratic behavior or justify such astronomical rewards. Their concerns aren’t baseless, given recent reports of Tesla sales cratering in Europe, including a 50% drop in Germany last month.
Yet supporters counter that Musk needs this incentive to stay focused on Tesla, especially as he pushes to transform it into an AI leader with self-driving cars and robotic innovations. They fear that without him, the company’s stock could plummet, a risk Musk himself amplified by hinting he might walk away.
Musk framed the vote as less about money and more about control, stating, “Hang on to your Tesla stock,” after the results were announced. He insists a doubled stake, nearing 30%, is vital to steer Tesla’s future, especially with technologies he believes could pose risks to humanity if mishandled.
He elaborated on this concern, noting the importance of overseeing the “robot army” he envisions, suggesting he doesn’t trust others with such power. This stance might sound like a sci-fi plot, but it clearly resonated with enough investors to secure the vote.
The market response was telling, with Tesla shares climbing 1.5% to $447.27 in after-hours trading following the announcement. Even with an 80% rise over the past year, this bump signals lingering confidence in Musk’s ability to deliver, or at least to captivate.
This shareholder decision is a high-stakes bet on Musk’s knack for defying odds, even as his distractions and controversies alienate customers. It’s hard to ignore that Tesla’s struggles, from plunging European sales to buyer backlash over his public antics, are tied to the man now handed this historic payout.
Still, there’s an undeniable allure in backing a figure who turned a floundering carmaker into a global giant, and many investors seem willing to roll the dice on his next big promises. The question remains whether this vote rewards innovation or simply emboldens a leader who might steer Tesla off course.
In the end, Musk’s potential trillionaire status hinges on feats that seem almost fantastical, yet his track record suggests underestimating him is a fool’s errand. As Tesla navigates this uncertain road, shareholders and skeptics alike will watch if this colossal gamble pays off or becomes a cautionary tale of unchecked ambition.
