Big Trouble in Tesla! Dispute Over Package, Possibility of Elon Musk Leaving the Company

In Brief

• Big Trouble in Tesla!

• Possibility of Elon Musk Leaving the Company

• Possibility of a Major Shakeup in Tesla

The Tesla company is currently in a big dilemma. There is a controversy over billionaire Elon Musk's massive $1 trillion package, and if it is not approved, there is a possibility that Musk might leave the company. Tesla's board chair, Robyn Denholm, has warned board members about this.

Tesla's annual shareholder meeting is about to take place. Prior to this, Denholm has sent a letter to shareholders requesting approval for Musk's $1 trillion compensation plan. It also states that if this does not happen, we will miss out on his talent and vision. "If we cannot inspire Elon Musk to do his best work, he may leave his executive position," Denholm has warned.

If this happens, there is a possibility of a major upheaval in Tesla. Musk will not receive this salary in the form of cash. Instead, they will be given shares of this amount. They will receive them only when Tesla's market value reaches $8.5 trillion. Therefore, Musk will not receive this package until shareholders see a strong benefit. If shareholders want this benefit, it is essential for Musk to remain in the position of CEO of the company. Otherwise, the company will suffer a major setback, as they have also mentioned in this.

Opposition from many...

Many Tesla shareholders are strongly opposed to this pay package. Several shareholder groups and key advisory firms have recommended shareholders to vote 'no'. They argue that this package is highly unrealistic and not in the best interest of the shareholders. Musk works not only at Tesla but also at SpaceX, Neuralink, and X, raising concerns among shareholders about how much time he can dedicate to Tesla. A vote on this pay package for Musk is scheduled for November 6. Future developments will depend on this.