Don’t miss the full story, whose reporting from Michelle Chapman at The Associated Press is the basis of this AI-assisted article.
Tesla has proposed a new compensation package for CEO Elon Musk that could reach $1 trillion over 10 years if the company meets extremely aggressive targets including achieving a $2 trillion market valuation and delivering 20 million vehicles annually.
Some key facts:
• The package includes 12 share tranches tied to targets ranging from car production to total company value over 10 years.
• Tesla must reach a $2 trillion market valuation and deliver 20 million vehicles annually (compared to less than 2 million in 2024).
• The plan requires 1 million robotaxis in commercial operation and delivery of 1 million AI bots.
• Musk must remain with Tesla for at least 7.5 years to receive any stock, and 10 years for the full amount.
• The proposal would give Musk increased voting power over Tesla.
• Conditions for the 11th and 12th tranches include Musk developing a CEO succession framework.
• Tesla shares have dropped 25% this year, largely attributed to Musk’s political affiliations.
• European sales plunged 40% in July compared to the previous year as Chinese competitor BYD gained market share.
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