Tesla has proposed a new compensation plan for CEO Elon Musk over the next 10 years that could ultimately top $1 trillion, even as electric vehicle sales continue to decline, TechCrunch reports.
The company is tying the compensation to several key metrics, one of which is Tesla's market value, which could rise from $1 trillion to $8 trillion. The plan also includes giving Musk, who has threatened to leave the company if he doesn't get more votes, more than 423 million additional shares to increase his control to 25%.
Tesla shareholders will vote on the proposal at their annual meeting later this year. The plan comes shortly after Tesla announced a $29 billion payday for Elon Musk to replace a previous $56 billion bonus that was blocked in court.
In a letter to shareholders, the company said the world is at a "critical turning point" in society and said it can usher in an era of "sustainable abundance" by introducing innovative and affordable technologies at scale. Meanwhile, Tesla says Musk's "unique vision" is "vital" to getting through this moment.
This plan is being offered despite the steady decline in electric vehicle sales both in Europe and in the largest electric vehicle market in the United States. At the same time, trust in the brand is also falling, in particular due to the political activities of the richest man in the world. The ambitious Full-Self-Driving technology also does not help, and more often scares away potential customers.
In addition, the company continues to suffer reputational damage from ongoing lawsuits and recalls of its electric vehicles. Just recently, the company was found partially at fault in a fatal accident, Cybertruck owners are suing over the lack of promised upgrades, and 7,000 Model Ys are being recalled in Australia due to software bugs.