A Tesla board vote may award Elon Musk new Tesla shares if he achieves a series of ambitious performance goals.
Elon Musk, currently the world's richest man, could become the first trillionaire thanks to Tesla shareholders. Musk won approval in a shareholder vote that could grant him Tesla shares valued at $1 trillion (£762 billion) if he meets specific targets over the coming decade.
The decision came after weeks of debate concerning Musk's management at Tesla and whether such a large compensation package was justified. This discussion sparked reactions from investors, pension funds, and even the pope. Ultimately, over 75% of shareholders supported the plan at Tesla’s annual meeting in Austin, Texas.
“Fantastic group of shareholders,” Musk said after the vote was counted. “Hang on to your Tesla stock,” he added.
The vote represents a significant win for Musk, demonstrating investor confidence despite recent setbacks for Tesla. The company has faced declining sales, reduced market share, and shrinking profits, issues some attribute partly to Musk’s leadership.
Additionally, Tesla’s sales in Europe have dropped sharply, including a 50% fall in Germany last month. Critics say Musk's involvement in US and European politics and his sharing of conspiracy theories online have alienated some car buyers.
***Elon Musk's potential to become a trillionaire hinges on ambitious targets despite Tesla's recent market challenges and mixed public perception.