Elon Musk’s Stunning R17.4 Trillion Pay Deal Gets Green Light From Tesla Shareholders

Tesla Shareholders Agree To Pay Elon Musk Record-Breaking R17.4 Trillion

In a dramatic decision that stunned global markets and electrified supporters, Tesla shareholders have agreed to pay Elon Musk a record-breaking US$1 trillion (approximately R17.4 trillion) compensation package after a tense vote at the company’s annual general meeting on Thursday, 13 June 2024. The colossal payout, described by some investors as unprecedented, was approved by 75% of shareholders. Moments after the announcement, Musk told the cheering crowd, “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.”

According to the BBC, the billionaire CEO walked onto the stage in Austin, Texas, to loud chants of his name as the audience erupted into applause. Musk marked the moment with his characteristic celebratory dancing while supporters roared.

A Historic Vote And A Massive Target

Tesla officials informed attendees that the pay package will only be unlocked if Musk meets extremely demanding milestones. The BBC reports that these include raising Tesla’s market valuation from US$1.4 trillion to an extraordinary US$8.5 trillion (R147.9 trillion). Musk must also deliver one million fully self-driving Robotaxi vehicles into commercial operation.

When the vote results were announced, the atmosphere inside the room shifted sharply. Introducing his remarks, Musk said:

“Other shareholder meetings are snoozefests but ours are bangers. Look at this. This is sick.”

Tech analyst Gene Munster reacted on X shortly after the meeting, writing:

“Let it sink in where Musk’s head is at… His vision of the ‘new book’ starts with Optimus.”

Robots, Robotaxis And Rising Expectations

Musk opened his speech by spotlighting the Optimus humanoid robot, surprising some analysts who had expected him to begin with electric vehicle plans or the Full-Self Driving (FSD) roadmap. He later said the company was “almost comfortable” allowing drivers to “text and drive essentially” using FSD, though United States regulators are still investigating the feature following several reported incidents.

Investment manager Ross Gerber told the BBC that the package was “another notch in the unbelievable things that you see in business”. He added that some of Musk’s political controversies had influenced his firm to reduce its Tesla position.

Market analyst Dan Ives described Musk as “Tesla’s biggest asset”, predicting that the company was heading into a phase where “AI valuation is getting unlocked” across its product ecosystem.

Divided Investors And A Fierce Debate

Although the package passed with strong backing, several major institutions voted against it. According to the BBC, Norway’s sovereign wealth fund and CalPERS opposed the plan. However, Tesla’s large retail investor base proved decisive.

Legal experts have also highlighted the scrutiny surrounding the package. Professor Ann Lipton told the BBC that it is unclear whether Musk will meet the extreme performance targets, though she noted that he achieved similar milestones “ahead of schedule” in 2018.

A Delaware court had previously struck down an earlier version of the compensation plan, ruling that Tesla’s board was too close to Musk. The company later reincorporated in Texas, and the Delaware Supreme Court is now reviewing the earlier ruling.