Tesla Shareholders Approve $56 Billion Pay Deal for Musk

Tesla's board has proposed an unprecedented $1 trillion compensation package for CEO Elon Musk, contingent on achieving highly ambitious targets over the next decade, including increasing Tesla's market capitalization from $1 trillion to $8.5 trillion, delivering 20 million vehicles, operating a fleet of one million robotaxis, and producing one million humanoid robots. Despite Tesla's recent struggles with declining sales, profits, and stalled technological advancements, board chair Robyn Denholm defended the package by emphasizing Musk's unique ability to pursue and deliver transformative innovations. The pay plan, which eclipses Musk's previous $56 billion deal, faces skepticism from critics who view the goals as nearly unattainable and worry about shareholder dilution amid economic headwinds. Shareholders are set to vote on the proposal in November, with Musk reportedly threatening to leave if not properly incentivized. The magnitude of the package is staggering, equating to nearly a quarter of India's GDP, and would significantly increase Musk's ownership stake in Tesla to 25 percent while also preparing for eventual CEO succession. The deal underscores Tesla's gamble on Musk's visionary leadership despite current operational challenges and widespread investor ambivalence.