EV giant Tesla Inc. (NASDAQ:TSLA) and its CEO, Elon Musk, are on the defensive as questions arise over the latter's trillion-dollar pay package and his fortune, currently worth half a trillion dollars.
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Elon Musk Defends $500 Billion Fortune
On Thursday, X user Seth Dillon defended the recent announcement that Musk was the richest person on the planet in a post. "The belief that this only happens by exploitation is so absurd. Wealth of this magnitude is an indication of the incalculable value that’s been created for the entire world," Dillon said.
Musk then responded to Dillion's post defending his fortune. "I build a lot of things with awesome people," the SpaceX CEO said, "and the companies that build those things get assigned a big value," he added.
Tesla Defends Elon Musk’s Pay Package
Meanwhile, Tesla also defended Musk's new pay package on X after criticism from New York State Comptroller Thomas DiNapoli, who called the package "excessive" in a new statement.
"Tesla's Special Committee designed a performance incentive plan that completely aligns Elon's compensation & shareholder value creation," the EV giant said in its response, adding that Musk would "receive nothing" if he does not deliver.
"Under Elon's leadership, Tesla has achieved an annualized return of 49% since the beginning of 2018," Tesla said, defending Musk as well as the Board.
It's worth noting that Tesla's share price saw a huge surge following Musk's $1 billion purchase of Tesla shares, coinciding with reports that the company was set to exceed analysts' and Wall Street's Q3 delivery estimates.
Tesla Urges Shareholders' Positive Vote
The company also recently urged shareholders to vote in favor of all the recommendations laid down by the Board of Directors, including Musk's new pay package.
Tesla also launched an ad campaign across the internet and social media, urging shareholders to vote for Musk's pay package. "The future of Tesla is in your hands," the company said in one of its ads. Tesla Board Chair Robyn Denholm also reiterated her support for Musk, calling him a "Once-In-A-Generation Visionary."
Elon Musk Says Pay Package About Retaining Control
The news comes as Musk had earlier said that the shareholder vote wasn’t about the compensation award, but about retaining control over the EV giant.
“If I can just get kicked out in the future by activist shareholder advisory firms who don't even own Tesla shares themselves, I'm not comfortable with that future," Musk had said in a post on X.
However, the pay package has been criticized by public figures like Sen. Bernie Sanders (I-Vt) as well as Pope Leo. Sanders had called the pay package "grossly immoral," while the Pope had also expressed concern about it, citing the widening income gap in society.
Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. Tesla also offers a favorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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