Latest news with #EVmaker
Gizmodo
7 days ago
- Automotive
- Gizmodo
Tesla Approves Elon Musk's $29 Billion Pay Package Despite Political Risks
Despite the headaches Tesla has faced from Elon Musk's political antics, the company's board just signed off on a new pay package for the CEO that is worth a whopping $29 billion. The new compensation terms come after a Delaware judge blocked a previous $55 billion compensation plan from 2018, siding with shareholders who argued the deal was unfairly approved. The plan was also announced during a pivotal moment for the struggling EV maker, which is trying to expand into robotaxis and humanoid robots. Many investors are worried that Musk's controversial forays into politics are hurting the company's brand. Indeed, recent data from research firm S&P Global Mobility found that Tesla's loyalty rate fell from 73% to 57.4% in the last year. The board said in a letter to shareholders on Monday that it approved the new compensation plan. The award gives Musk 96 million restricted Tesla shares, worth about $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 hold most of the stock for five years. If the courts reinstate his original 2018 pay deal, this new award gets canceled to avoid double-dipping. 'To be clear, losing Elon would not only mean the loss of his talents but also the loss of a leader who is a magnet for hiring and retaining talent at Tesla,' wrote board members Robyn Denholm and Kathleen Wilson-Thompson in the letter. Denholm and Wilson-Thompson formed the special committee that drafted the pay package. Musk's 2018 CEO pay plan—the largest in history at nearly $56 billion—hit a major roadblock when shareholder Richard Tornetta filed a lawsuit accusing Musk of influencing the board. Tornetta's lawyers even claimed Musk intended to use the payout to bankroll his plans to colonize Mars. The case is still tied up in court. Meanwhile, Musk's recent political moves have alienated a lot of typical EV buyers, sparking worries that he could end up dragging the whole electric car industry down with him. A recent study in Nature showed that Musk's political activities are hurting public opinion of Tesla, especially among U.S. liberals, resulting in declining interest not just in Teslas, but in EVs more broadly. The study tracked shifting attitudes before and after Musk's high-profile endorsements of Donald Trump and his leadership role in the Department of Government Efficiency (DOGE). Earlier this month, Tesla reported that its car sales fell 13% year-over-year in the second quarter. The company's stock has fallen 24% since the beginning of the year. Some investors have been urging Musk to get out of politics for months. Wedbush Securities analyst Dan Ives wrote in a note in May that Musk's political moves are going to have a lasting impact. 'The brand damage caused by Musk in the White House/DOGE over the past few months will not go away,' Ives wrote. 'Musk is Tesla and Tesla is Musk.' On Monday, Ives predicted that the new compensation package means Musk will remain at the helm of Tesla until at least 2030, adding a trophy emoji.
Irish Times
04-08-2025
- Automotive
- Irish Times
Tesla approves share award worth $29bn to Elon Musk
Tesla has granted chief executive Elon Musk 96 million shares worth about $29 billion (€25 billion). The move is aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders. In 2024, a Delaware court voided Mr Musk's 2018 compensation package, valued at more than $50 billion, citing the Tesla board's approval process was flawed and unfair to shareholders. Mr Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. READ MORE Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Mr Musk, without disclosing any details. Tesla is at a turning point as Mr Musk, its largest shareholder with a 13 per cent stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. 'While we recognise Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging ... we are confident that this award will incentivise Elon to remain at Tesla,' the special committee said in the filing. The award is designed to gradually boost Mr Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, it added. Tesla shares rose more than 2 per cent in premarket trading. – Reuters
Malay Mail
04-08-2025
- Automotive
- Malay Mail
Tesla approves share award worth US$29b to CEO Elon Musk
NEW YORK, Aug 4 —Tesla has granted CEO Elon Musk 96 million shares worth about US$29 billion (RM122.9 billion), a move aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over US$50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details. Tesla is at a turning point as Musk, its largest shareholder with a 13 per cent stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. 'While we recognise Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging... we are confident that this award will incentivise Elon to remain at Tesla,' the special committee said in the filing. The award is designed to gradually boost Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, it added. Musk must pay Tesla US$23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, it said in the filing. Tesla shares rose more than 2 per cent in premarket trading. — Reuters
Yahoo
04-08-2025
- Automotive
- Yahoo
Tesla approves share award worth $29 billion to CEO Elon Musk
(Reuters) -Tesla has granted CEO Elon Musk 96 million shares worth about $29 billion, a move aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over $50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details. Tesla is at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. "While we recognize Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging ... we are confident that this award will incentivize Elon to remain at Tesla," the special committee said in the filing. The award is designed to gradually boost Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, it added. Musk must pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, it said in the filing. Tesla shares rose more than 2% in premarket trading. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malay Mail
04-08-2025
- Automotive
- Malay Mail
Tesla approves share award worth US$29b (RM122.9 billion) to CEO Elon Musk
NEW YORK, Aug 4 —Tesla has granted CEO Elon Musk 96 million shares worth about US$29 billion, a move aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over US$50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details. Tesla is at a turning point as Musk, its largest shareholder with a 13 per cent stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. 'While we recognise Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging... we are confident that this award will incentivise Elon to remain at Tesla,' the special committee said in the filing. The award is designed to gradually boost Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, it added. Musk must pay Tesla US$23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, it said in the filing. Tesla shares rose more than 2 per cent in premarket trading. — Reuters
