Yahoo Finance Tesla Is Spending $48 Billion on Elon Musk — What New Investors Should Know
Tesla shareholders voted this summer to approve Elon Musk’s $48 billion compensation package as CEO of the EV manufacturer. The package includes 303 million options to buy shares at a reduced price, according to HCAMag.com.
Check Out: In 5 Years, These 2 Stocks Will Be More Valuable Than Apple
Read Next: 4 Genius Things All Wealthy People Do With Their Money
In the shareholder meeting, Musk likened Tesla’s future to not just a new chapter, but “starting a new book.”
The saga will begin in Texas, which will be the new legal home for the company, as well as the site of its headquarters and a key factory. In a series of posts on X, formerly Twitter, Texas Governor Greg Abbott congratulated Musk and said, “Welcome to the Lone Star State.”
During the meeting in Austin, according to WSJ.com, Musk acted jubilant, dancing on stage and telling the crowd, “I love you guys.”
For investors, it could mean a stronger company with an active CEO at the helm. In recent times, Musk’s attention has been divided between Tesla and his other ventures. In early 2024, Musk requested 25% of corporate shares of Tesla, to increase both his voting power and his equity.
Early in June 2024, Musk faced two lawsuits in Delaware, including one related to his efforts to create a separate AI company that could compete with Tesla, WSJ.com reported. The $48 billon paycheck seems to come as a means of ensuring Musk remains loyal to Tesla and also devotes more of his attention to the company.
During the shareholder meeting, Musk claimed it’s possible for Tesla to achieve a $30 trillion valuation someday, roughly 10 times its current value. One investor asked if that goal would be possible to achieve without Musk’s leadership.
“I think I am a helpful accelerant to that future,” Musk replied.
Not all investors were in favor of the pay raise or in support of Musk’s renewed enthusiasm for Tesla’s future. Investor James McRitchie, during a pre-vote presentation, said, “Tesla is Musk’s liquid piggy bank, since it’s publicly traded; his other companies are not… Either he sticks around long enough to use our shareholder capital to fund his other ventures, or he shifts his attention sooner if we reject his pay package and turn off the money tap… prepare for a future that doesn’t depend on a superhero dictatorship.”
In the past two weeks since the shareholder meeting and announcement of Musk’s pay raise, Tesla stock has risen from $178 per share to $196. In the past month, the stock price has jumped by roughly 10%.
More From GOBankingRates
8 Rare Coins Worth Millions That Are Highly Coveted by Coin Collectors
Housing Market 2024: Home Prices Are Plummeting in 10 Formerly Overpriced Housing Markets
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: Tesla Is Spending $48 Billion on Elon Musk — What New Investors Should Know
