Tesla shareholders have approved a staggering $56 billion pay package for CEO Elon Musk.This decision came during a high-profile meeting at Tesla’s gigafactory in Texas. Alongside approving Musk’s compensation, shareholders voted to move the company’s legal headquarters from Delaware to Texas and re-elected two board members: Kimbal Musk, Elon’s brother, and James Murdoch, son of media mogul Rupert Murdoch.
Elon Musk, ever the optimist, took to the stage to express his gratitude and share his vision for the future. “If I wasn’t optimistic this wouldn’t exist, this factory wouldn’t exist,” Musk declared to a round of applause. “But I do deliver in the end. That’s the important thing.” Musk had hinted the previous evening that the proposals were gaining strong support and thanked the shareholders for their vote of confidence.
Despite this backing, Musk faces a daunting legal battle. Earlier this year, a Delaware judge invalidated the pay package, describing it as “unfathomable.” Musk may have to defend against new lawsuits regarding this unprecedented compensation plan.
Brian Quinn, a professor at Boston College Law School, emphasized that the legal fight is far from over. “This thing is not over,” he remarked, noting that the Delaware judge will scrutinize the vote to ensure it was free from coercion and that Musk did not unduly influence the timing and strategy. “When they show up to the Delaware court saying it’s all good, they’re going to have to come with receipts,” Quinn added.
Quinn also suggested that Delaware might not suffer from Tesla’s legal departure if it means losing companies with poor governance practices. “If Texas wants to hang out a shingle that says, ‘Bring your worst corporate governance practices to Texas, we compete with Nevada,’ I mean, okay, that’s a brand,” he quipped.
Tesla’s Ambitious Future Plans
This decision comes as Musk continues to steer Tesla towards ambitious future goals. He revealed plans for Tesla to monetize its autonomous vehicle fleet similarly to Airbnb, allowing owners to make money by adding their cars to the fleet when not in use. “You can add or subtract a car to the fleet whenever you want,” Musk explained. “So you can say, like, I’m going away for a week, just one tap on your Tesla app, your car gets added… and makes money for you while you’re gone.”
Musk also envisioned a future where robots, performing everyday chores and factory work, could propel Tesla to annual profits of up to $1 trillion. “Literarily everyone” will own robots that will perform chores like babysitting and do work in factories, Musk said. He predicted a ratio of at least two robots for every human.
Additionally, Musk announced the approval for volume production of the Tesla semi, emphasizing its superior economics compared to diesel trucks. “Transport companies will lose money operating diesel vehicles compared to Tesla’s electric semi,” Musk confidently told shareholders. “The economics are much better than a diesel truck. It’s kind of basically a no brainer.”
Elon Musk’s Remarkable Journey
Elon Musk’s remarkable journey to becoming the world’s richest person, with a net worth of $209.6 billion according to Forbes’ 2024 billionaires list, is marked by his relentless pursuit of innovation. From his early ventures like Zip2 and PayPal to leading SpaceX and transforming Tesla, Musk has consistently pushed the boundaries of technology and business.
As Tesla forges ahead with its groundbreaking projects, the company’s leadership and shareholders remain steadfast in their support, navigating both promising opportunities and significant legal challenges.