Niles Investment Management founder and portfolio Dan Niles discussed Tesla’s potential $ 1 trillion compensation scheme for Elon Musk on ‘The Claman Countdown’.
CEO of Tesla Elon Musk On Monday, confidence in confidence about the company’s future revealed the purchase of about $ 1 billion in shares of electric vehicle manufacturer.
A regulatory filing revealed that Musk bought 2.57 million shares Tesla Stock On Friday at a price between $ 372.37 and $ 396.54 per share.
Musk’s purchase in early 2020 is the first time he bought Tesla Stock in the open market and it comes that the company is infection between a dull EV market to emphasize Artificial Intelligence (AI), Robotaxis and robotics.
It also comes because billionaire is demanding more control over Tesla and the company’s board has carried forward the $ 1 trillion compensation package that aims to address its goals by setting ambitious financial and operating goals for the payment of Musk.
Tesla provides Elon Musk on a large scale $ 1 trillion pay package
Tesla CEO Elon Musk bought about $ 1 billion in Tesla Stock on Friday in his first open market purchase since 2020. (ATI LORENT / AFP via / Getty Images)
Musk has demanded more polling power and a large stake in Tesla and earlier said that if he does not get 25% voting power, he will do his work. AI and robotics Outside the company. According to LSEG data, until December, Musk had about 13% stake in the company.
Jade Dorshemer, a group head of Energy and Power Technologies at William Blair, said in a note that the firm’s stock purchases “as a clear indication of confidence from musk,” seeing that stock increased on the news.
“With the purchase of Musk, the delivery expectations and the upper speed for robotax rollouts, we are becoming more rapid, but maintaining their market performance ratings,” Darsheimer said.
Tesla made a large -scale payment deal to keep the CEO amid the legal battle
| Langer | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 410.04 | +14.10 |
+3.56% |
Tesla shares were more than 5.3% in the afternoon after the purchase of Musk.
Musk’s previous compensation package, which was killed by one Delaware judge In 2018, concerns about the unprecedented size of the $ 56 billion compensation scheme along with the members of the board approved the deal, concerns are currently subject to appeal.
Teslas continued to be vandalizing despite the result of CEO Elon Musk with the White House
Tesla faced sluggish sales and opposition to Musk’s role with the Trump administration. (John Paraskevus / NewsD RM via / Getty Images)
Tesla has argued the importance of Musk for Tesla and the performance-based incentive in the compensation scheme justified big awards if the benchmarks arrived under the 2018 package. The company also released a small $ 29 billion prize to Kasturi, which is a “good trust” payment on the scheme held in courts.
New package up to $ 1 trillion will be required Approval by shareholders Before the biggest compensation scheme – which will be the biggest salary package in history – Kick in.
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“Similar to the 2018 package, it is purely based on Tesla performance and aligns the musk 100%with shareholders,” Dorsheimer said. “Musk has full support of the board, and we hope that he will get more than sufficient shareholder support to pass with flying colors.”
Reuters contributed to this report.
