"And the stakes were high; if he didn't get that control, he threatened to leave. Shareholders simply could not, did not want to imagine Tesla without Elon. All of that money, power, and control increases for Musk if Tesla reaches milestones based on operations, adjusted profit, and market capitalization. Every tranche, if the goal is reached, will deliver 35.3 million shares to Musk. For instance, the first tranche milestone is a market capitalization of $2 trillion."
"Tesla is a weird animal in which its share price often has nothing to do with actual fundamentals. It's not unusual for Tesla's stock price to rise because of comments Musk made during an earnings call even if its quarterly figures weren't particularly good. I'm sure this is incredibly frustrating for other automakers. Which is why I am more interested in some of the product and adjusted profit goals tied to this package."
Elon Musk secured a $1 trillion compensation package that links massive stock awards to Tesla achieving specified market-cap, operational and adjusted profit milestones. The package awards 35.3 million shares per tranche if targets are met, with the first tranche tied to a $2 trillion market capitalization and Tesla currently around $1.5 trillion. Product and adjusted-profit goals include delivering 20 million vehicles, attaining 10 million active Full Self-Driving subscriptions, shipping 1 million robots, and operating 1 million robotaxis commercially within ten years. Tesla's stock often moves independently of fundamentals, and leadership control was central to shareholder voting dynamics.
#tesla-compensation #corporate-control #market-capitalization #production--profit-milestones #autonomous-vehicles
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