on Thursday, Tesla shareholders have approved an unprecedented $1 trillion compensation package for CEO Elon Musk. The full remuneration plan will come into force by 2035 – provided the company manages to achieve its ambitious financial and production targets. If that happens, Musk will also gain control of about 25 percent of the company, up from the 12 percent he currently controls. More than 75 percent of Tesla shareholders approved the move in a preliminary vote.
Musk celebrated the news on stage at Tesla’s Gigafactory in Austin, Texas, appearing alongside two dancing humanoid robots, products of Optimus. “Look at us, this is sick,” he said.
But to achieve its goals, Tesla will need to lead in industries that go far beyond electric cars and ensure that Optimus can do much more than just dance. It will also have to beat all competitors in autonomous driving technology and robotics. “Tesla will need to be the market leader not only in the U.S. but also in Europe and other regions,” says Seth Goldstein, senior equity analyst at Morningstar, a financial services company.
Specifically, Tesla must reach a valuation of $8.5 trillion over the next 10 years, ship 20 million vehicles to customers, ship 1 million robots, operate 1 million robotaxis, and sell 10 million “Full Self-Drive” software subscriptions within three months – among other financial goals.
Before the vote, Tesla’s board argued that the sky-high compensation package was necessary to keep Musk as CEO and focus on the car company. On a call with investors last month, Musk suggested it would be tough for him to push Tesla forward in robotics and autonomy if he didn’t have a mighty influence on the automaker. “If we build this robot army, will I at least have a big influence on this robot army?” he asked. “I don’t feel comfortable building an army of robots unless I have a lot of influence.”
This is a developing story. Please check back for updates.