On the 6th, shareholders of American company Tesla voted to approve CEO Elon Musk's 10-year compensation plan. Under this plan, Musk could receive Tesla stock valued at nearly 1 trillion US dollars (about 4.17 trillion ringgit) as compensation in the future, setting a record for the largest amount ever awarded to a corporate leader.
According to various foreign media reports, 75% of Tesla's shareholders voted to approve the compensation package during the annual shareholders' meeting on the 6th. This unprecedented massive compensation plan will help Musk realize his vision for Tesla’s future development: transforming from an electric vehicle company into a technological giant focusing on artificial intelligence and robotics.
After the voting results were announced, Musk immediately took the stage to loud cheers from shareholders and danced enthusiastically with Tesla’s Optimus robot. Musk exclaimed that the shareholders' meeting felt like a nightclub.
"Other companies' shareholders' meetings are boring to death," he said. "Ours are always thrilling scenes."
He said that Tesla will not just open a new chapter in the future but will "begin a whole new book."
Musk expressed thanks to shareholders and Tesla’s board of directors. He said, "I am very grateful."
Although Tesla's business conditions this year have not been optimistic, with sharp declines in sales and profits in the first half of the year and the potential loss of billions of dollars in revenue due to reduced US government support for electric vehicles, Musk was unconcerned. In his speech to shareholders, he spoke about the company's yet-to-be-launched robotics plans instead of the automotive business.
This compensation plan sets challenging phased goals for Tesla’s future development. Musk will only be able to receive hundreds of millions of newly issued Tesla shares as compensation if he achieves these goals. These targets include realizing the commercial application of 1 million autonomous “robotaxis” and increasing Tesla’s market value from the current $1.5 trillion to $8.5 trillion. By then, the market value of Musk’s stock will reach $1 trillion.
Musk’s Net Worth Exceeds $500 Billion
According to the Forbes Billionaires List real-time data, Musk’s net worth exceeds $500 billion, making him the world’s richest person. This compensation package has always been controversial since its proposal, but Tesla’s board considers that if it is not passed, Musk may step down, which would be a significant loss for the company.
With some shareholders abstaining, the shareholders’ meeting also voted to support Tesla’s investment in Musk's AI company xAI. Although there are concerns regarding conflicts of interest, the decision is seen as beneficial to the development of both Tesla and xAI.
After resigning as the head of the US Office of Efficiency at the end of May this year, Musk has focused on the development and training of xAI’s artificial intelligence model "Grok". He has previously used his own business resources multiple times to promote the development of xAI. Earlier this year, he merged xAI with his social media platform X, creating a new enterprise with a market value of $113 billion and expanding the influence of the 'Grok' model. In July this year, his space exploration company also decided to invest $2 billion in xAI.