Tesla is awarding its CEO Elon Musk a package worth a possible $1 trillion, however, it relies in part on a dramatic increase in the value of the electric vehicle manufacturer.
The agreement, which has drawn criticism from shareholders, including Norway's sovereign wealth fund, was approved with a vote of more than 75 percent. The approval was greeted with whoops and cheers during Tesla's annual shareholder meeting.
While the $1 trillion figure is eye-catching, it is by no means guaranteed to materialize for the CEO. Twenty million Tesla vehicles and one million robots must be delivered over a decade. Tesla's market cap must also rise, first to $2 trillion from the current $1.4 trillion, and then eventually to $8.5 trillion. Musk's award is not dependent on hitting every milestone, though. He will receive payment for each one achieved. He only gets the full $1 trillion (in Tesla stock) if he hits every target.
The figures are ambitious, and Musk, accompanied by a dancing Optimus robot, told shareholders that he expects the firm's droid to be a fundamental part of the company's future. He said: "I think it's going to be the biggest product of all time, by far.
"I think there could be tens of billions of Optimus robots out there."
Musk became Tesla's largest shareholder and chairman in 2004, before assuming the role of CEO in 2007. Revenue has increased from $200 million in 2011 to around $95 billion, although the company's growth and its share price have fluctuated over the last 12 months, thanks, in part, to the antics of Musk himself.
The billionaire predicted deliveries of Tesla's Cybertruck would be between 250,000 and 500,000 per year. The reality has fallen far short of this. Similarly, Musk has made lofty promises for the self-driving abilities of Tesla vehicles, which have also failed to materialize.
One of the milestones on the path to the $1 trillion payout is 10 million Full Self-Driving (FSD) subscribers.
"Time," said Musk, "to pull a LOT of rabbits out of the hat."
A goal of the pay package was to keep Musk's attention focused on Tesla, and the milestones should certainly do this. However, considering the dubious showing of the Cybertruck and the increasingly fierce competition in the EV market, the billionaire faces a near-insurmountable challenge to reach the full payday.
No matter how many dancing robots there are to support him. ®
Source: The register