New Delhi: At Tesla's yearly shareholder meeting on Thursday in Austin, Texas, a visualization was taken that could prove to be a milestone in corporate history. Visitor CEO Elon Musk got a salary package of up to 1 trillion dollars (about Rs 84 lakh crore) for 10 years. The package is completely based on performance – no mazuma salary, just stock options. If Tesla achieves the target set in the next decade, Musk could wilt the world's first trillionaire.
What percentage of shareholders passed the proposal?
In the meeting, increasingly than 75% of shareholders gave the untried signal to the proposal. Describing the results, the company's General Counsel Brandon Ehrhart said that this visualization shows conviction in Musk's vision. Musk danced on stage with two Optimus robots and said, "This is awesome." Tesla stock rose 3% in after-hours.
How will the package work?
This package is divided into 12 phases (tranches). Musk will not receive any wiring salary, but if the visitor meets targets, he will receive increasingly than 423 million shares. With this, his stake in the visitor will increase from 13% to 25%. Main goals:
The company's market cap increased from $1.5 trillion to $8.5 trillion (about a 6-fold increase).
- Selling 20 million vehicles.
- Driving 1 million robotaxis.
- Selling 1 million humanoid robots (Optimus).
- 10 million full self-driving subscriptions.
- $400 billion profit in four quarters.
The first tranche will unshut at a $2 trillion cap, with the next at every $500 billion or 1 trillion increments. "This package is a roadmap for transforming Tesla into AI and robotics," Musk said. Even if just a few goals are met, they could still get billions of dollars.
Why was it approved, despite controversies?
Tesla Chair Robin Denholz warned shareholders that if the package is rejected, Musk could leave the company. "Without Musk, Tesla's value would be diminished," the workbench said. Musk moreover said on an earnings undeniability in October, "I want increasingly tenancy to build a robot army." Small retail investors and big names in Silicon Valley supported it on X, arguing that Musk gets nothing without results, but there was moreover opposition.
What was the stance of the Sovereign Wealth Fund?
Norway's $1.9 trillion sovereign wealth fund (with a 1.2% stake in Tesla) abstained from the vote. "This package is too big, will increase dilution of shares and there is a risk of dependence on Musk," he said. Proxy newsy firms Glass Lewis and Institutional Shareholder Services moreover objected. Groups like Public Citizen said, "This is 1.6 million times increasingly than the US median salary." Still, the majority of users expressed conviction in Musk's vision.
What is the preliminaries of the last package?
This visualization is related to the $56 billion package of 2018, which was canceled by the Delaware Court. Shareholders so-called that the workbench was under Musk's influence. Tesla appealed, but by then brought a new package. An interim package of Rs 29 billion was tried in August, and this mega plan in September. The Delaware Supreme Court will now decide on the old one.
What impact on the economy?
This package is worthier than the GDP of many countries. From IMF data – Netherlands (1.27 trillion), Poland (0.98 trillion), Switzerland (0.95 trillion). One user on X said, "Musk can buy unshortened countries." Critics are calling it suffrage in favor of the rich, but supporters say – it will promote innovation. Tesla is now focusing on AI, robotics superiority of EV. Musk spoken a production line of 1 million Optimus units at the Fremont factory.
