Tesla has approved a nearly $1 trillion bonus for CEO Elon Musk, the company announced at its annual shareholder meeting.
“Regarding the 2025 achievement award for our founder and CEO, Elon Musk: more than 75% voted “yes”, a company representative announced at the meeting, which was broadcast on Tesla's official website.
However, Musk will only be eligible to receive the award if the company's market capitalization grows by an additional $7.5 trillion over ten years. The award will be divided into tranches based on performance. Tesla's market capitalization is currently close to $1.5 trillion.
CNBC reported on October 28 that Musk has threatened to leave the company he leads unless shareholders approve a payout of nearly $1 trillion. The goal is to ensure the CEO can focus on the company going forward.
Musk has previously been criticized for the negative impact of his involvement in the Trump administration on the business, and he left his government job.
The American company Tesla Motors was founded in 2003 as a developer and manufacturer of electric vehicles and related technologies. The company uses its own technology to produce batteries and electric motors, which it sells to other automakers, including Toyota and Daimler.