Topline<\/p>\n
Tesla shares declined more than 3% on Friday, cutting CEO Elon Musk\u2019s fortune by $10 billion after the automaker voted to approve a compensation plan that could award the world\u2019s richest person $1 trillion over the next decade\u2014a move derided by some analysts and shareholders. <\/p>\n
An overwhelming majority of Tesla shareholders approved a payment plan that could be worth $1 trillion for the world\u2019s wealthiest person.<\/p>\n
Getty ImagesKey Facts<\/p>\n
Shares of Tesla fell 3.6% to around $429.70 as of Friday afternoon, continuing a two-day losing streak after the stock fell 3.5% on Thursday in the lead-up to Tesla\u2019s shareholder vote.<\/p>\n
More than 75% of Tesla shareholders voted<\/a> Thursday in favor of the payment package for Musk, following opposition from some of the automaker\u2019s largest equity holders.<\/p>\n The compensation deal awards Musk more than 423 million additional shares, raising his equity to roughly 25%, if Tesla achieves several goals over the next decade, some of which include Tesla\u2019s market capitalization increasing to $8.5 trillion and Tesla selling 12 million more cars, among others.<\/p>\n Matt Britzman, senior equity analyst at Hargreaves Lansdown, told Reuters<\/a> the $1 trillion deal is \u201coutrageous\u201d and Tesla\u2019s milestone goals are \u201cEverest-sized,\u201d but noted Musk would earn \u201cnothing unless he creates staggering value\u201d and \u201cpulls off the unimaginable.\u201d<\/p>\n AJ Bell\u2019s investment director Russ Mould wrote Friday there are \u201clogical reasons\u201d the shareholder vote passed, given the lofty goals set for Tesla, while WedBush Securities analyst Dan Ives wrote there was \u201clittle to lose\u201d for most shareholders in approving the deal, which Ives said solidified Musk as a \u201cwartime CEO.\u201d<\/p>\n Some shareholders opposed the vote: New York City Comptroller Brad Lander, who oversees Tesla shares held by the city\u2019s pension, accused<\/a> Tesla\u2019s \u201ccrony board\u201d of awarding the \u201cransom Musk wanted and now shareholders are on the hook for an indefensible compensation package.\u201d<\/p>\n Forbes Valuation<\/p>\n Musk remains the world\u2019s wealthiest person with a net worth estimated at $481.4 billion, following a drop of $10 billion (2%) on Tesla\u2019s stock decline. He became the first person to be worth $500 billion and, before that, $400 billion earlier this year, as Tesla\u2019s stock surge has propelled him further ahead of No. 2 Larry Ellison ($289.7 billion), whose net worth briefly approached<\/a> Musk\u2019s fortune after Oracle\u2019s meteoric rise in September. Other losses were recorded among the world\u2019s richest people, including Ellison, whose net worth fell $9.1 billion, in addition to declines for No. 3 Jeff Bezos (down $2 billion), No. 4 Larry Page ($5.6 billion), No. 5 Sergey Brin ($5.2 billion) and No. 6 Mark Zuckerberg ($2.6 billion).<\/p>\n Read More<\/p>\n","protected":false},"excerpt":{"rendered":"Topline Tesla shares declined more than 3% on Friday, cutting CEO Elon Musk\u2019s fortune by $10 billion after…\n","protected":false},"author":3,"featured_media":363154,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[64,66,176050,2539,176052,176049,7829,40269,176051,67,132,68],"class_list":{"0":"post-363153","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-elon-musk","10":"tag-elon-musk-net-worth","11":"tag-musk","12":"tag-musk-1-trillion","13":"tag-musk-net-worth","14":"tag-tesla","15":"tag-tesla-shares","16":"tag-tesla-stock","17":"tag-united-states","18":"tag-unitedstates","19":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115510798235938384","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/363153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=363153"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/363153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/363154"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=363153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=363153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=363153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}