|
Listen now
Getting your Trinity Audio player ready...
|
Tesla Inc. proposed a new compensation agreement for Chief Executive Officer Elon Musk potentially worth around $1 trillion, however to earn most of it he must grow the value of the company by a multiple of 8x over a 10-year period.
The long-awaited proposal, designed to incentivize Musk to lead Tesla for years to come, sets a series of ambitious benchmarks he must meet to earn the full payout, including expanding Tesla’s robotaxi business and growing the company’s market value to at least $8.5 trillion from around $1 trillion today. The plan spans 10 years.
A market capitalization of $8.5 trillion would be more than double that of Nvidia Corp., currently the world’s most valuable company. Tesla’s value peaked in late 2024 at about $1.5 trillion.
The additional shares Musk could receive would push his stake in the electric-vehicle maker to at least 25%, according to the terms detailed in Tesla’s proxy filing Friday.
Musk has publicly stated he wants a stake of that size.
The plan dangles a financial windfall and expanded control of the company to Musk, already the world’s richest person, after his 2018 package valued in excess of $50 billion was struck down by a Delaware court.
While Tesla appeals that decision, the board is seeking other ways to compensate its CEO, including with an interim stock award in early August valued at about $30 billion.
The incentives in the new plan aim to keep Musk’s focus on Tesla while it pursues growth in newer markets including robotics and artificial intelligence. Friday’s filing also included a non-binding shareholder proposal for Tesla to take a stake in Musk’s xAI startup.
Tesla shares rose 2% as of 6:30 a.m. Friday in New York. The stock has fallen 16% this year.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
