The company said at its annual general meeting on Thursday that more than 75% of the votes were in favor of this unprecedented compensation package. This outcome marks the successful conclusion of the weeks-long campaign by the board of directors, CEO and well-known retail investors of this electric vehicle manufacturer to seek support.
This compensation agreement paves the way for the world’s richest man, Elon Musk, who is expected to become the first trillionaire in history within the next decade and increase his stake in Tesla to 25% or even higher. To receive his full salary, he must achieve a series of goals, including significantly increasing Tesla’s market value, revitalizing its sluggish automotive business, and launching its emerging driverless taxi and Optimus robot projects.
“This is not only a new chapter for Tesla, but also a new book,” Musk said at the shareholders’ meeting. Wearing a black Tesla jacket, he strode onto the stage, with a cheering crowd below. This new book is significantly boosting vehicle production and increasing the output of Optimus at an unprecedented speed, which is unprecedented in human history.
This salary vote is of vital importance to Tesla. Previously, Musk had hinted that if he failed to gain greater control over the automaker, he might step down or devote more time to other companies. Nowadays, as Tesla advances its ambitious plans around driverless cars and artificial intelligence, Musk is likely to continue to lead the company.
Musk disclosed several ambitious goals for the company looking ahead to 2026 and beyond.
The CEO who has led the electric vehicle manufacturer since 2008 said that even if Tesla cooperates with established suppliers such as Samsung and TSMC, the company may eventually build a chip factory to achieve the required production volume.
“Even if we calculate based on the best production capacity of our suppliers, it’s still not enough,” Musk said. So I think we might need to build a Tesla Gigafactory. It is similar to a gigabit wafer fabrication plant, but on a larger scale.
He said that next year the focus will be on the research and development of Optimus self-driving cars, Semi trucks and Cyber cab self-driving cars. Musk expects that the production of Cyber cab will be roughly in line with the approval progress of the regulatory authorities. I would like to thank Waymo for paving the way for this. It has been very helpful. He added.
Musk said that Tesla’s goal is to increase its car production by about 50% by the end of next year.
Musk himself is also trying to win support. During Tesla’s recent earnings call, he spent part of the time explaining why he is reluctant to build an “army of robots” unless he owns a quarter of the company’s shares.
Earlier this week, Charles Schwab Asset Management committed to supporting the compensation package. Previously, some well-known retail shareholders stated on social media that they would withdraw their funds from the securities firms that voted against the plan. Several other institutional investors, including the Florida State Administration Board, also said they would vote in favor of the plan.
“Even with the new compensation package, there are still many challenges to truly achieving profitability,” said Dan Ives, an analyst at Wade Bush Securities, who has long been a staunty supporter of Tesla. Now, Tesla is moving towards the future of autonomous driving and embarking on the most significant chapter in its history.
This victory has pointed out a clear path for Musk. Despite the challenges, he is expected to become the world’s first trillionaire. If he can achieve all the goals in his plan, including increasing Tesla’s market value to $8.5 trillion, then the total value of his shares in this automaker will be approximately $2.4 trillion.
This new plan has been opposed by some long-time critics of Musk, including New York State Comptroller Thomas Dinapoli, who said on Thursday that it is “paying for unrestrained power, not for performance.” Vermont Senator Bernie Sanders called the plan “completely absurd”.
Sanders told reporters, “People can’t afford rent, medical expenses, groceries, or a decent retirement.” And now we are talking about a person whose wealth has surpassed that of the bottom 52% of families in the United States becoming even richer.
