A Tesla company exec sung Elon Musk’s praises despite a drop in profits after the company included a trillion-dollar compensation package for the world’s richest man

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Elon Musk may become even richer in the next decade if he can fulfil the requirements set by Tesla’s incentivizing compensation pack(Image: AP)

A Tesla executive said, “there aren’t any people out there like Elon,” after Musk was offered a $1 trillion compensation package from the company if he could meet certain profit goals.

Tesla revealed in a regulatory document Friday that it plans to grant Musk stock valued at up to 12% of the corporation through a dozen distinct packages, provided the company hits particular performance benchmarks, including enormous growth in vehicle manufacturing, stock value, and operational earnings.

Robyn Denholm, chairwoman of Tesla’s board of directors, addressed Bloomberg Technology about the company’s choice to support Musk despite his track record, saying that his talents are unique.

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Musk has to complete some difficult tasks to be eligible for the payout(Image: AP)

“Having the Board’s responsibility is to look at who the CEO is for the next period of time, and we believe that Elon is the right CEO for Tesla over this transformative period of time. And our view is he’s a generational leader,” Denholm said.

“There aren’t any other people out there like Elon who can actually lead the company over this next decade or so,” added Denholm.

“And so, once you decide who the leader should be, you need to put in place the compensation package to incent and motivate him to actually deliver against the ambitious goals.”

Should shareholders give their approval, the fresh pay structure could establish Musk as the globe’s inaugural trillion-dollar executive, representing an unprecedented tier of excessive remuneration in a nation already notorious for extreme compensation.

However, the rewards come in equity rather than cash, and the objectives are equally extraordinary.

Musk silenced critics by transforming Tesla into the world’s most valuable car company faces steep challenges, but Musk confronts even greater obstacles in achieving the ambitious targets established by Tesla’s compensation committee – particularly as the company’s core electric vehicle business struggles amid a downturn partly attributed to Musk’s venture into right-wing politics.

For several years, Musk has been one of the wealthiest individuals globally, with Forbes magazine currently estimating his worth at over $400 billion.

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Musk has a decade to make Tesla profits soar(Image: AP)

To secure his initial package of shares representing 1% of the corporation, Musk must persuade stock market investors that Tesla commands a $2 trillion valuation – twice its current market assessment – while simultaneously achieving multiple additional benchmarks.

Claiming the complete share offering and becoming the planet’s first trillion-dollar individual would demand the market capitalization soar to $8.5 trillion, doubling that of today’s most valuable corporation, semiconductor giant Nvidia.

Among other objectives, Tesla’s vehicle sales would need to hit 20 million, nearly tripling its total sales since its inception over two decades ago.

Musk would also have to significantly expand Tesla’s robot and robotaxi businesses by selling a million of each, despite the latter only recently launching its taxi service and lagging behind competitors like Waymo.

Musk would also need to stay with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount.

The 11th and 12th tranches of the plan require Musk to devise a framework for his successor as CEO.

This year’s drop in Tesla sales was largely due to backlash over Musk’s affiliation with President Donald Trump.

Tesla is also facing increasing competition from major Detroit automakers and especially from China.

Tesla’s sales in Europe have plummeted after Musk aligned with a far-right political party in Germany.

Sales dropped 40% in July in the 27 European Union countries compared to the previous year, even as overall electric vehicle sales soared, according to the European Automobile Manufacturers’ Association.

Meanwhile, sales of Chinese competitor BYD continued to rise rapidly, capturing 1.1% of all car sales.

Without a reversal of those trends, meeting the financial goals could prove especially difficult.