Tesla shares rise as stockholders approve Elon Musk's $2.6bn compensation plan

That Time Elon Musk's Mum Maye Came on the Nikola Tesla EV Rally in Croatia

"The grant gives Musk $2.6 billion in stock options in 12 tranches that each vest as the company hits key performance milestones over 10 years", CNBC reported.

Tesla's shareholders have approved CEO Elon Musk's 10-year compensation package. Using the current value of Tesla stock, Musk could add an estimated $2.6 billion to his wealth this year with the new stock package.

The other is tied to specific revenue and profit goals, beginning at $20 billion in sales and $1.5 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) and topping out at $175 billion in revenue and $14 billion in EBITDA.

To meet the first milestone, Tesla's current market cap must increase to $100 billion.

Moreover, Chanos said, the SolarCity acquisition of which KA was short "was going bankrupt" because "they got the market wrong" and "out of the blue Mush decided Tesla should buy SolarCity for United States dollars 8 billion" although SolarCity "was losing USD 300 million in negative EBIT a year before the debt service and depreciation". It is now around $52 billion. Musk also must stay at Tesla either as chief executive or executive chairman and chief product officer to receive the package, which was initially valued at about $2.6 billion.

Ahead of yesterday's vote, a top investor in Tesla and a major proxy adviser offered opposing views on whether to support the compensation deal, which required majority approval from shareholders.

That's the message from the latest cover of the Rolling Stone magazine as Musk "is getting the world ready for the lateral move over SpaceX, (and) he's gonna hit the parachute before the shareholders do", warned Chanos.

Intel acquired Mobileye a year ago for $15.3 billion.




The package-arguably the largest-ever of its kind-underscores the company's outsize ambitions and how intimately connected its future success is to Musk. "This is our ambition". Fidelity investment fund, which holds nearly 10 percent of Tesla stock, declined to comment. The share price of TSLA attracts active investors, as stock price of week volatility recorded 3.44%.

But some analysts are sceptical of the plan. Out of the sell-side analysts polled by Zacks Research, 5 have given the stock a Strong Buy or Buy rating.

A statement from CalSTRS' Director of Corporate Governance, Anne Sheehan, read: "Given the size of the award, we believe the potential dilution to shareholders is just too great".

The vote was contentious, with a proxy advisory firm opposing the package and large institutional investors supporting it.

In July 2016, Mobileye said its contract with Tesla would not be renewed, without providing a reason for the split between the two firms. Both are Tesla board members.

Tesla's shares were up 3.3 percent to $320.70 as of 12:25 p.m.in NY, erasing losses for the year. CEO Elon Musk recently revealed that people will be able to do "pretty much anything" in the near future -an important point given that most controls in the 3 are found in touchscreen menus.

- CNBC's Lora Kolodny contributed to this article.

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