Tesla shareholders have approved a pay package for Elon Musk that could see the billionaire earn up to US$1 trillion ($1.54 trillion) over the next decade. The package, which was voted on Friday (AEST), makes Musk the world's richest man by some estimates, though required payments would reduce the value to US$878 billion ($1.35 trillion).
Tesla chair Robyn Denholm argued the package was necessary to retain Musk's focus on the company, warning that without it, Tesla could lose his time, talent, and vision. Musk currently serves as CEO of both Tesla and SpaceX, leads several other ventures including AI, and was a former adviser to the Trump administration.
However, the package faced opposition from major investors. The California Public Employees' Retirement System, the largest US public pension fund, said it violated their policy on executive pay. Norway's sovereign wealth fund also objected, citing concerns over the award's size, dilution, and key person risk.
To fully cash in, Musk must meet aggressive goals: increase Tesla's stock price from US$2.3 trillion ($3.5 trillion) to US$8.5 trillion ($13.1 trillion), and oversee the rollout of 20 million vehicles, including one million robotaxis, plus one million robots. Markets analyst Thomas Essaye noted the extreme growth required but called Musk a visionary comparable to Thomas Edison.
At the shareholder meeting, Musk promised a 'whole new book' for Tesla, including production of the Cybercab robotaxi starting in April, a next-generation Roadster, and a giant chip fabrication plant for AI, potentially partnering with Intel.
