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Musk purchased various amounts of shares at different prices on
Friday, according to a regulatory filing. The move may be viewed
by the markets as the billionaire remaining confident in the
company's future.
Earlier this month Tesla released a proposed pay package for
Musk that would possibly make him the world's first trillionaire
if he hits a series of extremely aggressive targets for the
company over the next decade.
Tesla said in a regulatory filing that it will hand Musk shares
worth as much as 12% of the company in a dozen separate packages
if the company meets certain performance targets, including
massive increases in car production, share price and operating
profit. If approved by shareholders, the new pay package could
make Musk the world’s first trillion dollar executive, and would
mark a new level of outsized pay in a country already known for
extreme compensation. But the payoff is in shares, not cash, and
the goals are extreme as well.
To get his first package of shares equivalent to 1% of the
company, Musk would have to convince investors in the stock
market that Tesla is worth $2 trillion in total, double what
they value it today, and also hit several other milestones. To
receive all the shares offered and make him the world’s first
trillion-dollar man would require that market value to then rise
to $8.5 trillion, double that of the world’s most valuable
company now, chipmaker Nvidia.
Tesla has seen a plunge in sales this year, largely due to
blowback over Musk’s affiliation with President Donald Trump.
Tesla also faces intensifying competition from the big Detroit
automakers and particularly from China.
Investors have grown increasingly worried about the trajectory
of the company after Musk had spent so much time in Washington
this year, becoming one of the most prominent officials in the
Trump administration in its bid to slash the size of the U.S.
government.
Tesla is set to hold its annual shareholders meeting on Nov. 6,
where investors will vote on the new pay package.
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