Tesla’s recent decision to award CEO Elon Musk a $46 billion stock grant has raised eyebrows and sparked debate among shareholders. The grant, which Musk had demanded, comes at a time when the company’s stock has experienced significant losses, losing $10 billion since January. Despite this, Tesla has provided a visual representation of the magnitude of the grant by equating it to the value of 46,561 new and unsold Teslas that were in the company’s inventory in the first quarter of 2024.
The stock award is also equivalent to $12 million for every Cybertruck sold since its launch through April. Interestingly, it is also the same amount for every Cybertruck that had to be recalled due to an issue with the accelerator pedal. Additionally, the grant amounts to $153 million for every current Cybertruck owner trying to sell their vehicle online.
At the recent Tesla shareholder meeting, there was no acknowledgment of setbacks on the Cybertruck, despite Musk previously stating that its success is crucial for Tesla’s future. In response to criticisms, Musk made a defensive remark, suggesting that if kids find the Cybertruck cool, adults should too. This argument was met with skepticism and further fueled the perception that Tesla is not friendly towards its predominantly Democratic customer base.
Furthermore, the shareholder meeting itself resembled a cult-like atmosphere, with Musk receiving praise for his actions “for the First Amendment” and little dissenting opinions being expressed. Musk’s remarks were often mumbled and filled with uncomfortable silences, causing concern among neutral listeners. Instead of addressing concerns about a promised $25,000 Tesla EV, Musk focused on the potential revenue growth of current Tesla products without providing substantial evidence or explanations.
While there are valid concerns and criticisms surrounding Tesla’s decisions and strategies, the company’s shareholders have chosen to support Musk with this significant stock grant. Time will tell if this decision proves fruitful or if it further exacerbates existing issues within the company.