Tesla has proposed a new 10-year compensation plan for CEO Elon Musk that could be worth as much as $1 trillion even as the EV maker’s car business stumbles and it sets its sights on humanoid robotics and AI.
The company has tied the compensation to a number of benchmarks, one of which involves increasing Tesla’s overall valuation from around $1 trillion to more than $8 trillion. The plan would grant Musk more than 423 million additional shares in the company, boosting his level of control to around 25%. Musk has previously threatened to leave Tesla if he didn’t receive more voting power.
The proposal will be voted on by shareholders at Tesla’s annual meeting, which is scheduled for later this year. The details of the plan come just one month after the company announced a $29 billion compensation package meant to make up for a plan that was struck down by a judge in Delaware.
Tesla wrote to shareholders in a filing with the Securities and Exchange Commission that the company believes the world is at a “critical inflection point” in society, and claims it can usher in an era of “sustainable abundance” by “introducing innovative and affordable technologies at scale.”
“Tesla can help bring about a society that democratizes autonomous goods and services,” the company wrote.
Tesla wrote that Musk’s “singular vision” is “vital” to “navigating this critical inflection point.” It cited the company’s recently-published “Master Plan Part IV,” which it says Musk “unveiled,” even though the CEO barely acknowledged it, except for agreeing that it lacked specifics.