Despite the headaches Tesla faced with Elon Musk’s anti -political political, the company’s board recently signed a new pay package for the Director General, worth $ 29 billion.
The new compensation terms come after a Delaware judge blocked a previous compensation plan of $ 55 billion from 2018, with the shareholders who argued that the deal was unfairly approved.
The plan was also announced during a pivotal moment for the wrestling EV manufacturer, who is trying to expand to robotaxis and humanoid robots. Many investors are concerned that Musk’s controversial entries into politics hurt the company’s mark. Indeed, Recent data From a research firm S&P a global mobility found that Tesla’s loyalty fell from 73% to 57.4% in the last year.
The board said in a Letter to shareholders On Monday, it approved the new compensation plan. The prize gives Musk 96 million restrictive Tesla shares, worth around $ 29 billion at current prices if he stays in a senior leadership role for two years. Musk will have to pay $ 23.34 per share and then keep most of the share for five years. If the courts reinstall its original payment from 2018, this new prize is canceled to avoid double soaking.
“To be clear, losing Elon would not only mean the loss of his talents, but also the loss of a boss, who is a magnet to hire and retain talent at Tesla,” wrote board members Robyn Denholm and Kathleen Wilson-Thompson in the letter. Denholm and Wilson-Thompson formed the special committee, which edited the pay package.
The Musk 2018 plan plan – the largest in history at nearly $ 56 billion – hit a major road block when shareholder Richard Tornetta presented a lawsuit accusing Musk of influencing the board. Tornetta’s lawyers even claimed that Musk intended to use the payment to bankrupt his plans to colonize Mars. The case is still bound in court.
Meanwhile, Musk’s recent political moves have alienated many typical EV buyers, causing concerns that he could end up dragging the entire electric car.
A A recent study In Nature pointed out that Musk’s political activities hurt public opinion of Tesla, especially among US liberals, resulting in diminishing interest not only in Teslas, but in EVs wider. The study tracked change attitudes before and after the high -profile approvals of Donald Trump and his leadership role in the Department of Government Performance (DOGE).
Earlier this month, Tesla reported that its car sales fell 13% a year after a year in the second quarter. The company’s share has dropped 24% since the beginning of the year.
Some investors have encouraged Musk to get out of politics for months. Wedbush’s analyst Securities Dan Ives wrote in a note in May that Musk’s political movements will have a lasting impact.
“The brand damage caused by Musk in the White House/Doge for the past few months will not leave,” Ives wrote. “Musk is Tesla and Tesla is Musk.”
Monday, Ives anticipated That the new compensation package means that Musk will remain at Tesla’s head until at least 2030, adding trophy emoji.
