Tesla offered Elon Musk a compensation package of $1 trillion
This is reported by Bloomberg.
The unprecedented move appears to be aimed at incentivizing Musk to return to business. Over the past year, his interests have extended far beyond the four companies he manages: Musk has delved into politics and decided to create a party after being expelled from the White House.
To receive the promised reward, Musk will have to dedicate a lot of time to working at Tesla, whose business continues to suffer due to his past political activity and increasing competition, primarily from Chinese electric vehicle manufacturers.
The Tesla board of directors has set several ambitious goals, including developing autonomous taxi services, which the company only began testing in real-world conditions in June, and achieving a market capitalization of $8.5 trillion. In this case, Musk will receive 12% of the company's shares, which will amount to slightly more than $1 trillion. Along with his existing shares, his stake will reach 25%; Musk previously stated that he would like to control a package of this size.
Achieving the capitalization goal will not be easy. At the end of last year, it was $1.5 trillion, and now it is less than $1.1 trillion. The most expensive company in the world, chipmaker Nvidia, is valued at around $4 trillion. Besides Tesla, Musk has three other companies - xAI, Neuralink, and Boring.
Tesla's business faces serious problems. Sales in the second quarter fell by nearly 14% compared to the same period in 2024, revenue decreased by 12% to $22.5 billion (marking the most significant decline in over a decade), and net profit dropped by 16% to $1.17 billion. At the end of last year, Tesla lost its position as the world's top electric vehicle seller to Chinese company BYD.
