According to Reuters, Tesla has just assigned CEO Elon Musk. It is a question of keeping it at the head of the company as it goes from the concentration of its automotive activity of slowdown to AI and robotics.
This happens at a critical moment, because the basic activities of Tesla electric vehicles lose steam. To stay ahead, Musk directs the company to new daring companies, including robotaxis and humanoid robots, which, according to him, will define the future of Tesla.
Board supports Musk’s vision
Tesla’s board of directors posted on X, saying that it is crucial to keep and motivate the best talents, starting with Elon. They praised its unique mix of leadership and technical skills, calling it “proven builder of revolutionary and profitable companies”.
Where does the actions grant come from?
The 29 billion dollar shares is part of a remuneration agreement in 2018 which rewarded Elon Musk for having achieved major objectives such as Tesla’s value and income growth. A judge blocked the plan earlier this year for equity problems, but shareholders have now voted to bring him back, unlocking Musk’s payment.
Tesla described the subsidy of 96 million actions a first stage of “good faith” to the honor of the original salary package of $ 50 billion in musk. A new long -term CEO remuneration plan will be voted by investors at the annual meeting on November 6.
Approval of shareholders and new conditions
Musk’s new actions only consult if it remains in a key executive role until 2027. Once acquired, it must hold them for five years, except to cover taxes or the purchase price of $ 23.34 per share, the same price set in its 2018 remuneration plan. If the court restores its compensation agreement in 2018, this subsidy will be canceled or reduced to prevent a double compensation.
The plan was supported by a special committee of the board of directors, including President Robyn Denholm and director Kathleen Wilson-Thompson.
The committee noted that although Elon has many companies in competition for its time, they believe that the price “will encourage Elon to stay in Tesla”.
Tesla increases 2%, bitcoin gains are distinguished
Tesla’s shares increased by 2% after the announcement of Elon Musk’s new pay affair. However, the action is down 25% this year due to the drop in sales, aging models and the reaction on Musk’s political opinions. Customer loyalty has dropped since Musk approved Trump, and analysts expect another drop in sales in 2025.
Tesla failed T2 estimates with revenues of $ 22.5 billion and a BPA of $ 0.40, both below the forecasts.
However, the $ 284 million in Tesla bitcoin gains have stood out. Due to the new accounting rules, its cryptographic participations increased from $ 951 million to $ 1.24 billion. But the gain could have been much greater. Tesla bought 43,200 BTC in 2021 for $ 1.5 billion, then sold more than 75% during market stockings, only winning $ 936 million.
All eyes are now on Musk when Internet is looking forward to hearing what he says afterwards.
