Elon Musk's massive new pay package of $1 trillion was approved by Tesla shareholders on Thursday. The move came even as many worried that Musk might step down as CEO if his pay package didn't go through. Over 75 percent of shares voted in favor of this proposal, as per reports.
With this, Musk is eligible to get the largest corporate payout in history. However, the $1 trillion payout comes with some preconditions. Here are five challenges Musk will have to overcome to get the staggering amount.
Elon Musk's challenges to get $1 trillion payout
Musk faces a set of challenges he needs to overcome in order to be eligible for the entire $1 trillion payout. As per The Verge, the hurdles for Musk are as follows –
- Raising Tesla’s market capitalization from $1.5 trillion to $8.5 trillion in 10 years
- Putting 1 million Robotaxis into service
- Selling 12 million more cars
- Selling 10 million Full Self-Driving subscriptions
- Selling 1 million humanoid robots
What to know about Elon Musk's new pay package
The pay agreement clears a path for the world’s richest person to become the first ever trillionaire. Musk will also be expanding his stake in Tesla to 25 percent or more over the next decade.
Also Read | Furious Elon Musk blasts 'scam' NYC mayoral ballot form: 'Cuomo's name is...'
{{/usCountry}}The pay agreement clears a path for the world’s richest person to become the first ever trillionaire. Musk will also be expanding his stake in Tesla to 25 percent or more over the next decade.
Also Read | Furious Elon Musk blasts 'scam' NYC mayoral ballot form: 'Cuomo's name is...'
{{/usCountry}}Musk took to the stage in Austin, Texas, with dancing robots. "What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book," he said. "This really is going to be quite the story."
He added: "Other shareholder meetings are like snoozefests, but ours are bangers. I mean, look at this. This is sick." Norges Bank Investment Management, which manages Norway’s sovereign wealth fund, were among Tesla's largest shareholders, who opposed this move. Others against it include American Federation of Teachers, Institutional Shareholder Services, and Glass Lewis.
Tesla shares rose 1.8% as of 4:54 p.m. in postmarket trading Thursday in New York. The stock was up 14% this year through Wednesday’s close, narrowly trailing the 16% advance in the S&P 500 Index.
(With agency inputs)