Tesla's Big Payday: A Clash of Opinions

Tesla's CEO, Elon Musk, is once again making headlines, but this time the focus is on his proposed pay package—a topic that has sparked debate among investors.

The Debate

• Norway's Investment Fund opposes the pay package, citing concerns over:
• The excessive amount of money involved.
• The potential dilution of Tesla's value.

• The company's over-reliance on Musk.

• Baron Capital Management, however, supports the package, arguing that:
• Musk is the driving force behind Tesla's success.
• Without him, Tesla might not exist.

The Details

• Musk, Tesla's biggest shareholder, could receive shares worth up to 12% of the company if Tesla meets key targets, including:
• High vehicle production.
• A strong stock price.
• Significant profits.

Beyond the Pay Package

Tesla's annual meeting will also vote on over a dozen proposals, but the pay package remains the most contentious issue.