A $1 Trillion Gamble: Tesla Shareholders Back Elon Musk's Audacious Pay Package

Unprecedented Approval: In a landmark decision, Tesla shareholders have greenlit Elon Musk’s extraordinary pay package, potentially valued at nearly $1 trillion (£760bn). This staggering deal, approved by 75% of voters, was celebrated at the firm’s annual general meeting, signifying a bold trust in Musk’s leadership.

Goals and Challenges: To unlock this massive payout, Musk must elevate Tesla’s market value from $1.4 trillion to $8.5 trillion over the next 10 years, alongside other ambitious targets including deploying 1 million self-driving Robotaxi vehicles. While Musk touted the Optimus robot as a key focus, some analysts expressed dismay, urging him to prioritize the electric vehicle business instead.

Market Reactions: Following the announcement, Musk’s excitement resonated in Austin, Texas, where he confidently proclaimed this endeavor as starting a ’new book’ for Tesla. However, despite a recent 62% climb in Tesla shares, doubts loom about the company’s future amid tough competition, particularly in the robotaxi sector led by rivals like Waymo.

Investor Concerns: The pay deal has garnered mixed reactions; some prominent investors, such as Norway’s sovereign wealth fund and CalPERS, voiced their opposition, reflecting concerns over Musk’s polarizing persona and its impact on Tesla’s brand value. Investment firm Gerber Kawasaki’s Ross Gerber highlighted skepticism regarding demand for humanoid robots and questioned Musk’s grasp on public sentiment.

Looking Ahead: Despite challenges, tech analyst Dan Ives remains optimistic, declaring Musk as Tesla’s biggest asset while anticipating an emerging AI-driven valuation for the company. With board members rallying behind Musk’s new pay package amid corporate governance scrutiny, the future remains uncertain yet undeniably thrilling for Tesla as they navigate this ambitious chapter.