Musk's compensation package is essential for Tesla's future as the company transitions from a traditional automaker to an AI-focused technology leader. Without Musk's visionary leadership, Tesla risks losing significant value and falling behind in critical areas like Full Self Driving and robotics. The pay structure only rewards Musk if he creates enormous shareholder value, making it a smart investment in Tesla's transformation.
The $1 trillion pay package represents corporate excess at its worst, with Tesla's current valuation only justified by blind faith in Musk rather than actual performance. Tesla's EV sales are declining while Musk's political controversies damage the brand globally, yet shareholders are being asked to reward him. Institutional investors and Norway's sovereign wealth fund recognize this increasing dependence on one distracted leader.
There is a 25% chance Elon Musk will become the first trillionaire, according to the Metaculus prediction community.
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