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Did you hear? Elon Musk got his $1 trillion pay package. Of course you did, because coverage of that highly anticipated vote is everywhere, including here at TechCrunch. But what does this actually mean?
Yes, this is about money, but it’s more about power and control. You might recall that Musk repeatedly talked about the need to control Tesla and offered up a variety of scenarios, including one involving a robot army, to argue for it.
And the stakes were high; if he didn’t get that control, he threatened to leave. Shareholders simply could not, did not want to imagine Tesla without Elon.
All of that money, power, and control increases for Musk if Tesla reaches milestones based on operations, adjusted profit, and market capitalization. Every tranche, if the goal is reached, will deliver 35.3 million shares to Musk. For instance, the first tranche milestone is a market capitalization of $2 trillion. Today, Tesla’s market cap sits at about $1.5 trillion.
Tesla is a weird animal in which its share price often has nothing to do with actual fundamentals.
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