Tesla unveiled a compensation package for CEO Elon Musk that could make him the world’s first trillionaire, with $975 billion in additional shares. The plan ties Musk’s rewards to market value milestones and operational targets, including reaching a market value of $8.5 trillion by 2035 and selling 20 million vehicles.
Critics question if the pay package will accelerate Tesla’s growth, while supporters see it as a strategic move. The plan requires Musk to stay engaged at Tesla for at least 7.5 years. Shareholders will vote on the package on Nov. 6. The ambitious targets and risks associated with AI, AVs, and robotics make the plan controversial.
Tesla stock has dropped 14% YTD, while NVIDIA and Microsoft are up 25% and 18%, respectively. Tesla’s forward P/S ratio is 10.7, higher than Apple but lower than NVIDIA and Microsoft. Tesla currently has a Zacks Rank #4 (Sell). The convergence of AI and quantum computing presents significant investment opportunities.
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Read more at Nasdaq: Can Musk’s $1T Pay Package Keep Tesla on the Fast Track?