Good news and bad news for Elon Musk as Tesla $1 trillion pay plan agreed

Elon Musk got what he wanted this week. Tesla shareholders approved his colossal new compensation plan–potentially worth nearly $1 trillion if the company meets a set of dizzying milestones. But while investors in Austin were cheering, Tesla’s European sales were tumbling at a pace that underscored how precarious Musk’s grip on the global electric vehicle market has become.

Trillion dollar targets for Musk

The new package gives Musk twelve tranches of stock, payable if Tesla’s market value and operational targets surge far beyond today’s levels. The first payout arrives at a $2 trillion market cap – up from about $1.54 trillion now – and stretches to an almost unthinkable $8.5 trillion at full value. Operational goals include 20 million vehicle deliveries, 10 million Full Self-Driving subscriptions, and one million Optimus robots in commercial use.

At Thursday’s annual meeting, Musk described those ambitions as world-changing, claiming the humanoid robots could “eliminate poverty” and even help prevent crime. Critics, however, note that Tesla hasn’t yet put a single Optimus robot on sale, and that Musk could still pocket tens of billions without hitting the toughest targets, thanks to loopholes covering “extraordinary events” like wars or pandemics.

While shareholders granted Musk more control – his stake could rise from 13% to 25% – the vote came as Tesla’s sales in Europe suffered dramatic declines. In Sweden, registrations plunged 89% in October, 86% in Denmark, and roughly 50% in Norway and the Netherlands, with Spain down 31%. Only France showed modest growth. Chinese EV makers including BYD, Xpeng, and Geely’s Zeekr are now outselling Tesla in several markets once dominated by the U.S. brand.

Analysts say the slump reflects both an ageing Tesla lineup and the “Musk factor” – a consumer backlash against the billionaire’s politics and persona. A recent study estimated U.S. Tesla sales would have been up to 83% higher without Musk’s polarizing behavior.

The world’s richest man appears hell bent on getting ever richer, while millions continue to struggle in his wake.

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