Tesla on Friday made a new proposal, which can make Elon Musk a trillionier, as the electric vehicle manufacturer wants to focus his CEO on the firm as the Artificial Intelligence (AI) race heats up.
The proposal will provide some 423 million shares in the world to the world’s richest man, if Tesla meets a series of milestones in the next 10 years, including increasing the firm’s market capitalization to an ambitious $ 8.5 trillion.
Under these conditions, the pay package will cost around 1 trillion dollars, which increases the world’s first trillionaire.
The proposal, which still requires the approval of Tesla shareholders, comes as something, in recent months the company’s attention on the company is concerned about the focus.
Tech Mogul, who owns X, SpaceX, Neurlink and Boring Company, added politics to his already packed portfolio earlier this year, when he played a role in the Trump administration leading the government’s efficiency department (DOGE) in the Trump administration.
The move proved to be particularly expensive for Tesla, which saw his share price and earnings tank as the EV manufacturer became a political symbol for Kasturi and pushed his cost cut in Dogge.
The company continued to feel the effects of Musk’s political efforts even after leaving the White House to focus on its companies again. Tesla CEO was engaged in a very public fight with President Trump, who threatened to target Musk’s official contracts and subsidies.
The Tesla Board on Friday argued that it is “compulsory for Tesla’s continuous success and transformational development that Shri Musk is maintained and to focus on a significant amount of his time and efforts to achieve his vision for Tesla.”
Meanwhile, his previous payment package was initially about 56 billion dollars, tied in court as last year was killed by a federal judge in delaware.
It appears that there is a point of controversy amidst interaction with the board on its role in the company, as Musk pushed to assurance that “he would be compensated for his previous services with the 2018 package”. He also sought 25 percent voting stake in Tesla.
The board said, “Mr. Musk also expressed the possibility that he could pursue other interests that could have more impact on not receiving such assurances,” the board said.
The latest salary package would provide musk with about 12 percent shares of Tesla, which made his voting power approximately 25 percent, as requested.
Wesbash Securities Analyst Dan Ewes described it as necessary for the firm to keep musk on helm at an important time.
“We believe it was a smart step by the board because the biggest property for Tesla is musk … and with the AI revolution. It is a significant time for Tesla and a further time with robotics front and center,” he wrote in a note on Friday.
AI, as underlined by Ewes, is also important for the board’s push to maintain the musk musk. Despite being an EV manufacturer, Tesla has focused rapidly on AI and robotics as autonomous vehicles and humanoid robots.
As tech firms have run to develop AI, resulting in a fierce competition to attract top talent, sometimes with a multimilian-dollar salary.
“Looking at this background, the Special Committee determined that the failure to maintain and encourage Mr. Musk can not only risk losing its CEO and leader in the AI region, but also AI talent which will probably be willing to leave in the absence of their leadership, because the leadership is an important factor that is an important factor to attract Tesla.”
