"For Musk to access the full payout, he needs to grow Tesla's market cap to $8.5 trillion over the next decade and hit a series of ambitious product milestones. These include boosting annual earnings to $400 billion a year, building a million Optimus robots, and delivering around 12 million EVs by 2035 - an average of 1.2 million a year, which the letter points out is well below the total Tesla sold in 2024."
"The shareholder group criticized Tesla's board for not securing a commitment from Musk, who runs multiple companies, to "devote his attention" to Tesla, and warned that the pay package could lead to share dilution for Tesla shareholders. The letter also pointed to the EV giant's volatile performance, with sales and revenue both slumping in the first half of the year amid rising competition and backlash over Musk's political activities."
A coalition of unions, state treasurers, and institutional investors urged Tesla shareholders not to approve Elon Musk's $1 trillion compensation proposal. The investor group includes SOC Investment Group, the American Federation of Teachers, and New York City Comptroller Brad Lander. Investors criticized Tesla's board as insufficiently independent from Musk and described the performance goals as vague and less demanding than they appear. The full payout would require Tesla's market cap to reach $8.5 trillion within a decade and attainment of ambitious milestones such as $400 billion in annual earnings, one million Optimus robots, and roughly 12 million EVs by 2035. The group highlighted the lack of a commitment from Musk to devote his attention to Tesla, warned of potential share dilution, and noted volatile performance with sales and revenue slumping in the first half amid rising competition and backlash over Musk's political activities.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]