Elon Musk has recently acquired approximately $1 billion (£735 million) worth of Tesla shares, an action that coincided with a more than 6% increase in Tesla’s stock during early trading. Musk, who already owns around a 13% stake in Tesla, has expressed a desire for greater control over the company, particularly as it plans to invest in areas such as robotaxis and artificial intelligence.
Tesla’s board proposed a compensation plan valued at about $1 trillion, which could allow Musk to acquire up to 12% of shares if specific performance targets are met. An interim award of $29 billion in shares was granted to Musk last month due to legal challenges that had invalidated a previous pay package agreed upon in 2018.
Recent discussions between Musk and Tesla’s board revealed his demand for a 25% stake in the company, leading to tensions where he threatened to leave Tesla if his demands were not met. Following the share purchases made on Friday, Musk’s actions are seen as a reaffirmation of his investment in Tesla, especially as the company faces increased competition and falling sales due to the cessation of tax incentives for electric vehicles in the U.S.
Tesla has also experienced branding challenges connected to Musk’s political activities. Recently, he faced criticism from the British government for remarks made at a far-right rally. Musk expressed that there was a need for people to “fight back or die,” a statement considered dangerous by officials.
The company’s board has indicated that its compensation strategies for Musk are designed to ensure that his political involvement does not interfere with Tesla’s operations. Board chair Robyn Denholm noted that while Musk’s personal motivations are his own, he remains integral to Tesla during this transformative period.
Source: https://www.bbc.com/news/articles/cp982z3xrz7o?at_medium=RSS&at_campaign=rss