Elon Musk is filthy, stinking rich. Despite Tesla’s current troubles resulting in his net worth tumbling a few billion, he’s still the third richest person on the planet. Apparently that wealth isn’t enough for him or Tesla. Now, the company actually created a website to convince shareholders that their part-time CEO deserves a $US55 billion compensation package.
This all started six years ago, when Tesla shareholders approved a $US55 billion compensation plan for Musk contingent on the company hitting certain targets — which it did, as Tesla became the number one EV seller on the planet for a few years. Not all shareholders were on board with the plan, however, and eventually these shareholders sued. The suit was complicated but essentially, the dissenting shareholders claimed Musk misled them when coming up with the compensation plan. A Delaware judge agreed and the plan was voided by a judgment in January.
Now, the massive payday is back on the board as shareholders move to vote to incorporate in Texas. If this vote goes through, shareholders will be able to revote on the $US55 billion package. Enter a website at the very height of height of capitalistic cringe; SupportTeslaValue.com. One proposal uses six points to make a case on why Elon should receive the payday, like point four that talks about how Elon received no salary:
Unlike most CEOs, Elon was entitled to receive NO salary, NO cash bonuses, and NO equity that would vest simply by the passage of time. Instead, he was asked to deliver the type of exponential value creation most thought was impossible – or get nothing.
Worse yet is a link that takes you to a letter to the stockholders. The letter is equally cringe, and reads as if none of the companies growth is possible without Musk. One part even attempts to paint him as an unpaid employee if he doesn’t receive the exorbitant money:
The Court’s decision, if implemented, means that Elon would not receive any compensation for more than five years of service to Tesla, effectively rendering him an unpaid employee, despite his many accomplishments, which include: – Driving us to dominate the electric vehicles market and sell the best-selling vehicle in any category, – Leading us to groundbreaking innovations in artificial intelligence and sustainable energy, and – Growing stockholder value by almost 1,100%.
Ultimately it’ll be down to the courts and shareholders on whether or not Musk receives any of that stock. The argument that Musk is owed $US55 billion is a tough one to make at the moment, considering the multiple problems plaguing the company. Tesla laid off 10 percent of its workforce this month, its first new vehicle in years—the Cybertruck—is plagued with manufacturing problems and the stock is currently on a downward slide. Many Tesla shareholders are particularly angry about Musk focusing more on his purchase of Twitter/X than the company itself over the last year. Now Musk is moving away from building a long-promised actually affordable EV, instead throwing more cash into the notorious money fire that is robotaxis.