Elon Musk has put an ultimatum to Tesla: either shareholders approve his new compensation package worth up to $1 trillion, or he may leave the CEO position. This is stated in a letter from Tesla Chair Robin Denholm sent to shareholders, writes Business Insider.
Tesla can't do without Musk
The letter states that the company is at a «critical stage of development». Denholm warned that refusing to approve the payment plan could lead to a «loss of significant value for Tesla» and halt its development in the fields of artificial intelligence and robotics.
«The main question for shareholders is simple: do you want Elon to remain Tesla's CEO and help make the company a leader in autonomous technologies and the most valuable in the world?» — states the address.
Conditions of the new contract
The plan, which will be put to a vote at Tesla's annual meeting next week, includes grand objectives. To receive the full amount, Musk must meet several conditions:
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sell 1 million Optimus robots;
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increase Tesla's market capitalization to $8.5 trillion by 2035;
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increase his stake in the company from 13% to nearly 29%.
However, not everyone supports the idea of a trillion-dollar bonus. Consulting firms ISS and Glass Lewis advised shareholders to vote «against». In response, Musk called them «corporate terrorists» and stated that he does not want to «build an army of robots, risking being ousted due to foolish analyst recommendations».
What lies behind Musk's ultimatum
Robin Denholm emphasized that the issue is not just about money — Musk aims to enhance his influence in Tesla to control the direction of artificial intelligence development.
Tesla has already faced legal disputes over previous bonuses for Musk. The current plan is an attempt to revive an agreement canceled by the Delaware court, but now for a significantly larger amount.
Earlier we reported that Tesla has lost its European positions amid a powerful competition surge.