Musk threatens to leave: mega compensation package for Tesla in danger!

Musk threatens to leave: mega compensation package for Tesla in danger!

There is a lot of turmoil in the world of Tesla. CEO Elon Musk is facing an important transition as the company has asked shareholders to approve a new compensation package. If this doesn't happen, Musk could actually resign from his position as CEO of Tesla. Robyn Denholm, the chairwoman of the board, warns that the future of the company is at stake. On November 6th, the compensation plan will be voted on at the general meeting, with the decision on Musk's future and thus also on Tesla's strategy being decisive. This is reported by the Pforzheim newspaper.

The discounted compensation plan, which could rank as the highest in company history, could pay Musk up to $1 trillion if he achieves various company goals. However, the plan sets clear conditions: Elon Musk must remain at the top of the company at least until 2030. In addition, a million robotaxis will be in use by then and a million AI robots will be delivered. If these ambitious goals are not achieved, Musk will come away empty-handed, Denholm continued. This urgency is reflected not least in the fact that Tesla has been struggling with declining sales since last year.

Visions for the future

The plans Musk has for Tesla are enormous. Its focus is clearly on robotaxis and humanoid robots, which it is estimated could account for up to 80 percent of the company's value. Tesla's current market value is around $1.1 trillion. For the next decade, Musk is aiming for a doubling to over two trillion dollars. To achieve this, a total of 20 million vehicles are to be delivered. An adjusted profit of $400 billion is also expected to be achieved with a market value of $6.5 trillion.

Musk himself does not have a fixed salary, but instead receives a compensation package approved in 2018 as an incentive, which is currently on hold due to a legal dispute. A transition compensation package worth around $29 billion, in the form of restricted shares, has now been approved to keep Musk on until at least 2030, the reports daily news.

The game with risk

Musk sees his stake in Tesla increasing to 25 percent in order to maintain his influence and set the course for the future. Despite his current dominance as the world's richest person with an estimated fortune of $370 billion, it is clear that the growing risk and uncertainty in the automotive industry is not stopping him. Observers see the intended compensation package as a strategic move to further motivate Musk.

There are also signs of a possible rapprochement between Musk and Donald Trump after tensions between the two in the past. Trump recently called Musk a "good man," which has the potential to lead to interesting developments in Tesla's corporate policy.