Now Reading: Tesla buyout by SpaceX could unlock Musk’s $1 trillion payday
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Tesla buyout by SpaceX could unlock Musk’s $1 trillion payday
Hindustan Times reports that Tesla's 2025 CEO Performance Award Agreement contains a clause that could let Elon Musk bypass half his performance targets if the automaker is acquired. The pay package, worth…
The Story in Brief
Hindustan Times reports that Tesla's 2025 CEO Performance Award Agreement contains a clause that could let Elon Musk bypass half his performance targets if the automaker is acquired. The pay package, worth up to $1 trillion in stock, requires 12 market-value goals and 12 operational milestones, including selling 1 million robots. But a single sentence on page five of the 16-page contract states that if Tesla is taken over, only market-value targets remain, based on the deal price.
Musk controls about 86% of voting power at SpaceX, giving him wide authority to make an offer. An $8.5 trillion deal, six times Tesla's recent value, would deliver the full 424 million shares. Legal experts say Texas law shields SpaceX from most shareholder lawsuits, though Tesla investors must still approve any deal. Musk holds under 20% of Tesla's voting shares, making persuasion necessary.
The Indian Opinion
The narrative that Musk's $1 trillion Tesla payday was a stretch target now looks hollow. Hidden escape clauses in a shareholder-approved contract let him achieve it by selling the company to himself via SpaceX. This is not exceptional performance; it is financial engineering. The real test is whether Tesla's board and minority shareholders will approve an acquisition price that protects their interests, not just Musk's. If they do, who is really holding the reins at Tesla?
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
