New york: Electric carmaker Tesla CEO Elon Musk has secured shareholder approval for a landmark compensation package, marking a pivotal moment for the company's ambitions in artificial intelligence and robotics.
According to Thai News Agency, the proposal received backing from over 75 percent of shareholders, allowing Musk the opportunity to receive up to $1 trillion in shares over the next decade. However, the actual payout is expected to be $878 billion. This decision is seen as critical for Tesla's future, which depends on Musk's vision of developing self-driving vehicles, a nationwide network of robo-taxis, and the commercialization of humanoid robots.
Despite concerns over Musk's controversial political rhetoric, which has impacted Tesla's brand image, the approval alleviates worries about his commitment to Tesla amidst his other ventures, such as SpaceX and xAI. The company's board and numerous investors believe that the compensation package will ultimately benefit shareholders, as Musk must achieve several significant milestones to earn his payout.
Musk's ambitious targets for the next decade include delivering 20 million cars, deploying 1 million robotaxi vehicles, selling 1 million robots, and generating $400 billion in core profits. To receive his full compensation, Tesla's stock price must see a substantial increase, starting at a valuation of $2 trillion and aiming to reach $8.5 trillion.
Musk emphasized that he values the increased voting stake in Tesla more than the monetary aspect of the compensation, as he gears up to launch his "army of robots."