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Tesla Approves Elon Musk’s $1 Trillion Pay Package
Tesla shareholders have approved a controversial pay package for CEO Elon Musk, which could be worth up to $1 trillion. However, this compensation hinges on achieving ambitious growth targets, including delivering 20 million cars and growing Tesla’s market cap to $8.5 trillion from its current $1.4 trillion valuation.
Aggressive Goals for Full Compensation
To secure the full pay package, Musk must achieve several key milestones: selling 1 million robots, deploying 1 million robotaxis, securing 10 million full self-driving subscriptions, and generating $400 billion in adjusted annual profit. Currently, Musk owns approximately 13% of Tesla, with the potential to own 25% if these targets are met.
Risks and Investor Advice
While Musk’s pay package aligns his incentives with those of Tesla shareholders, the ambitious targets raise questions about future performance amidst increased competition and shrinking margins. Investors are advised to approach Tesla stock with caution, as much of its current valuation is contingent upon speculative future growth.
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