Tesla shareholders have approved a $1 trillion reward for Elon Musk to remain as CEO of the company, requiring him to increase Tesla’s value sixfold within 10 years. The deal, which could elevate Musk’s personal wealth beyond the GDP of entire nations, was backed by a 75% majority at Tesla’s annual meeting in Texas. Shareholders prioritized retaining Musk’s leadership over concerns about corporate governance and social responsibility, as his potential departure loomed as a greater risk.
Musk’s compensation plan includes unlocking share payouts in stages, with targets such as reaching a $8.5 trillion market capitalization, boosting profits 24fold to $400 billion, and scaling robot sales. Tesla board chairman Robin Denholm argued the package was necessary to motivate Musk to achieve “impossible” goals, warning that his absence could destabilize the company. Critics, including some investors and activists, condemned the deal as excessive, citing Musk’s controversial political activities and their impact on Tesla’s reputation.
The plan comes amid declining profits and reputational damage linked to Musk’s involvement in U.S. politics, including his role in Trump’s administration. A Yale study estimated his actions cost Tesla over 1 million car sales. Musk defended the proposal, stating he would abandon Tesla if denied control over voting rights, and hinted at redirecting focus to his AI startup xAI.
The compensation package also ties to Tesla’s broader ambitions, including plans for a “giant chip factory” to produce AI chips. Musk proposed collaboration with Intel, which faces competition from Nvidia in the AI chip market. Despite vague details on production, Musk emphasized the chip’s efficiency and affordability.
Tesla’s advanced driver assistance technology has gained partial approval in China, where it seeks to regain market share amid rising competition. Musk announced plans to secure full regulatory clearance by early 2025, following meetings with Chinese officials and partnerships with Baidu. The company’s efforts highlight its reliance on Musk’s leadership as it navigates global challenges and technological shifts.
