Tesla Board Faces Crucial Vote on Musk's $1 Trillion Pay Package Amid Waning Confidence and Slumping Sales.
The electric carmaker’s board is set to vote on CEO Elon Musk’s ambitious compensation package on Thursday, with proxy firms advising investors to reject the deal amid mounting challenges facing the company. Glass Lewis and Institutional Shareholder Services have both recommended that shareholders vote against the package, citing concerns over the impact of Musk's political activities on Tesla's brand.
The $1 trillion pay package includes 12 market-cap targets, requiring the company to reach $8.5 trillion in valuation within a decade, starting with $2 trillion. However, critics argue that this plan does not incentivize Musk to refocus on the company, given his high existing stake worth tens of billions of dollars.
Tesla has faced significant headwinds this year, including declining global sales and investor confidence. The company reported a 13.5 percent decline in US sales in July and has seen new car registrations plummet in several major markets. Musk's political activities have also hurt Tesla's brand, with analysts estimating that if he had stayed out of politics, the company's sales could have been higher by 67-83%.
Despite these challenges, Tesla board Chair Robyn Denholm has warned that rejecting the pay package could risk Musk's departure, highlighting the critical role he plays in the company's success. Analysts agree that Tesla's future depends on Musk's continued involvement, particularly given his leadership in AI ambitions.
The vote comes at a pivotal moment for Tesla, with the company facing intense scrutiny over its performance and impact on the environment. As investors weigh their options, they are likely to prioritize Musk's leadership and vision for the company's future success.
The electric carmaker’s board is set to vote on CEO Elon Musk’s ambitious compensation package on Thursday, with proxy firms advising investors to reject the deal amid mounting challenges facing the company. Glass Lewis and Institutional Shareholder Services have both recommended that shareholders vote against the package, citing concerns over the impact of Musk's political activities on Tesla's brand.
The $1 trillion pay package includes 12 market-cap targets, requiring the company to reach $8.5 trillion in valuation within a decade, starting with $2 trillion. However, critics argue that this plan does not incentivize Musk to refocus on the company, given his high existing stake worth tens of billions of dollars.
Tesla has faced significant headwinds this year, including declining global sales and investor confidence. The company reported a 13.5 percent decline in US sales in July and has seen new car registrations plummet in several major markets. Musk's political activities have also hurt Tesla's brand, with analysts estimating that if he had stayed out of politics, the company's sales could have been higher by 67-83%.
Despite these challenges, Tesla board Chair Robyn Denholm has warned that rejecting the pay package could risk Musk's departure, highlighting the critical role he plays in the company's success. Analysts agree that Tesla's future depends on Musk's continued involvement, particularly given his leadership in AI ambitions.
The vote comes at a pivotal moment for Tesla, with the company facing intense scrutiny over its performance and impact on the environment. As investors weigh their options, they are likely to prioritize Musk's leadership and vision for the company's future success.
it sounds like a lot of $$ but what's the point if elon's gonna be busy with politics all the time? 
tesla needs some stability not this up & down thing. and 12 market cap targets? that's just crazy talk 
maybe they should focus on making the cars first then worry about the $$ 
. Can't he just focus on making electric cars like everyone else? 
And what's up with this pay package?! $1 trillion?! 
That's just crazy talk! I mean, I know Musk is a genius and all, but does he really need that kind of dough to motivate him? 
He's already got enough from his existing shares... 
. If he was just out of politics, I bet we'd see some actual innovation in EVs and not just a bunch of hype 
Maybe investors are just blinded by his charm 
. Can't wait to see how this whole thing plays out 
anyone else think this pay package is a bad idea? 
I feel you, dude! It's like, one thing is clear - Elon Musk has been through a rollercoaster of emotions lately 
. On one hand, his commitment to AI is super inspiring 
, but on the other hand, it's hard not to think that he's gotten a bit too caught up in politics and lost focus on Tesla's growth 
. We need someone who can keep Tesla moving forward while still pushing for change 
. Keep us posted, fam! 
why do shareholders need to be worried about Elon's politics tho? Like isnt his job to run the company not campaign for president lol 
Im just glad the board is having a sit down with him about it, coz I'm sure shes got some concerns