Tesla’s shareholder meeting approved paying the company’s CEO, Elon Musk, a record $1 trillion in stock, which will allow him to control the electric car maker and make him the first billionaire on the planet.
The proposal was approved by just over 75% of the shareholders despite the opposition of some of the main institutional shareholders.
Tesla’s board of directors, which has been accused in the past of lacking independence, allowed Musk, who currently controls 15% of the shares, to vote on the proposal.
In recent days, Tesla directors mounted a pro-Musk campaign, with Chairman Robyn Denholm warning shareholders that Musk could leave the company if he was not awarded the $1 trillion in stock.
The approved proposal establishes compensating Musk for each of the 12 established objectives and that, together, will involve the delivery of stock options currently valued at one trillion dollars.
If all the objectives are achieved, Musk would have more than 25% of the company’s shareholders, which would give him the ability to control it.
The businessman stated on October 22 that he needed control of the company to build a “huge robotic army” with the humanoid Optimus.
“I don’t feel comfortable building that robot army if I don’t have at least a strong influence,” he explained.
After the approval of the historic compensation was announced, Musk appeared on the stage installed at Tesla’s headquarters in Austin to the shouts of “Elon, Elon” from the attendees, and accompanied by an Optimus robot that danced to the rhythm of the music.
Musk, after thanking the board of directors for approving his compensation, said Tesla will begin “not a new chapter but a new book” with Optimus.
The businessman announced that it will be the “greatest product in history”, surpassing mobile phones, and announced that an assembly line will be established at the Fremont automobile plant, in California, to manufacture one million Optimus per year, and another in Austin with capacity for 10 million units.
Although Optimus is still in development and does not have any real applications, Musk said he anticipates that there will be billions of units in the future that will be capable of eradicating world poverty.
The businessman also stated that Tesla is the only company prepared to achieve these goals.
“Tesla is already the largest robot manufacturer in the world because every vehicle is a robot,” he said, adding that “Optimus is a robot with arms and legs instead of a robot with wheels.” EFE
Read more: Elon Musk’s $1 trillion pay deal draws ire from unions ahead of shareholder vote
The vote will also ease investor concerns that Musk’s focus has been diluted with his work in politics, as well as the direction of his other companies, including rocket maker SpaceX and artificial intelligence startup xAI.
The board and many of the investors who lent their support have said the $1 trillion package benefits shareholders in the long term, as Musk must ensure Tesla achieves a series of milestones to receive payment.
Goals for Musk in the next decade include the company delivering 20 million vehicles, having 1 million robotaxis in operation, selling 1 million robots and earning up to $400 billion in operating profits.
With information from EFE and Reuters
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