Tesla is rallying after shareholders approve Elon Musk's compensation (TSLA)

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Tesla's shareholders have approved CEO Elon Musk's 10-year compensation package. But which way do shareholders hope the vote goes?

Musk could own as much as $55.8 billion in Tesla stock and more than a quarter of the electric vehicle company in the next decade if he hits all targets of the new plan.

If Musk hits a series of performance targets over the next decade, the carmaker's market cap would rise to $650 billion from roughly $55 billion today.

"This morning, before coming here, I met with Elon Musk, a man of vision, perhaps the greatest technological visionary of our time".

"We have concerns about the lack of focus on profitability for the company, and the one profitability metric that is used excludes the cost of stock-based compensation", CalSTRS' Director of Corporate Governance, Anne Sheehan, said in a statement. Also, Musk can not sell his stock until five years after the deal, which should theoretically dissuade him from artificially inflating Tesla's stock price in order to cash out quickly.

"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 has said in regulatory filings that Musk's award could yield him more than $50 billion if all goals are achieved.

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Elon and Errol Musk are both brilliant engineers in their own right, however it seems as if they need to work on repairing their relationship for the good of their family.

The stock package should provide a major boost to Musk's already sizeable net worth. Meanwhile, the company has faced continued setbacks on its more affordable Model 3.

It's especially similar since Mobileye is also an Israeli company operating in the space of autonomous driving technology.

The big award aside, Tesla's board has said Musk won't receive any other compensation to underscore that he'll win only if shareholders do, too.

There's also the issue of production delays, which have occurred on all of Tesla's current vehicles. It's pegged on ambitions to turn Tesla into one of the world's largest companies as it ventures beyond solar panels and electric cars. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Nearly every crime you can possibly think of, he has done.

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