Elon Musk's Trillion-Dollar Tesla Tussle
Tesla CEO Elon Musk could receive a $1 trillion payout if ambitious targets are met. These include achieving a $2 trillion valuation and producing 20 million vehicles. Musk's plan also faces challenges, including Tesla's declining sales in Europe and intensifying competition from Chinese automaker BYD.
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Elon Musk, the CEO of Tesla, is set to receive a massive payout of USD 1 trillion if his company hits certain lofty milestones over the next decade. According to documents from Tesla, the targets for such compensation involve robust aims like reaching a $2 trillion market value and delivering 20 million vehicles. The plan also demands an operational fleet of one million robotaxis and AI bots.
Musk, who has been consistently ranked among the world's richest individuals, must stay with Tesla for at least seven years to qualify for any stock benefits, and a full decade to net the total compensation. However, Tesla's targets seem arduous amid present challenges, including a 25% share price decline linked to Musk's political associations and increased competition from automakers like China's BYD.
The company's financial performance has raised concerns among investors, with quarterly profits dropping dramatically and European sales falling following Musk's political moves. Despite this, Tesla recently granted Musk a stock package worth USD 29 billion, underscoring the company's belief in his leadership. The company is appealing a court's decision to revoke his earlier 2018 pay package while shareholders await a new succession framework.
(With inputs from agencies.)
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