Is Musk's Big Payday Make-or-Break for Tesla Share Price?
The Tesla (NASDAQ: TSLA) share price rose ahead of the company’s annual shareholder meeting on Thursday, 6 November, where CEO Elon Musk’s proposed pay package was a key topic. The package could be worth up to $1 trillion, but it hinges on Musk achieving ambitious performance goals for Tesla.
Key Details of Musk's Pay Package
This is not simply a cash payout. Instead, the compensation is structured as a stock package tied to Tesla’s market capitalization growth over the next 10 years. If Musk meets his targets, Tesla’s market cap would soar to $8.5 trillion, more than five-and-a-half times its current $1.5 trillion valuation.
Concerns Around Approval and Control
[translate:“My fundamental concern … if I go ahead and build this enormous robot army, can I just be ousted at some point in the future?“]
Musk worries about maintaining control and fears leaving the company if the deal is rejected. Shareholders are divided on the proposal, with some concerned about the size of the payout and Musk’s future role.
Investor Opinions
- Cathie Wood, CEO of Ark Invest, supports the plan, famously targeting a Tesla share price of $2,600 by 2029, aligning with the $8.5 trillion market cap goal.
- Opposition comes from major investors, including Norway’s sovereign wealth fund, which owns 1.2% of Tesla, expressing skepticism about the proposal.
The decision will likely shape Tesla’s trajectory and Musk’s influence in the coming decade.
Author’s summary: Elon Musk's proposed $1 trillion stock package depends on Tesla's market cap growing dramatically, sparking debate on leadership and shareholder value.
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