Elon

Nov. 7 (UPI) — Tesla shareholders approved an unprecedented new package for CEO Elon Musk that could see him become the world’s first trillionaire.

The firm said 75% of shareholders with voting rights on Thursday backed Musk’s 10-year pay deal, which could net him $1 trillion over that time by boosting his stake in Tesla by more than 423 million shares.

The share bonanza is contingent on him delivering on a promise to drive up Tesla’s market capitalization five-fold from is current level of around $1.5 trillion to $8.5 trillion, roughly double the size of the Japanese economy.

Shareholders at the annual general meeting at Tesla HQ in Austin, Texas, voted it through on the recommendation of Tesla’s board, arguing Musk might quit if it were rejected and that the company could not afford to lose him.

Counsel from independent advisors Glass Lewis and Institutional Shareholder Services who said the “astronomical” deal should be rejected due to “unmitigated concerns surrounding the special award’s magnitude and design,” was largely ignored.

Addressing the meeting after the result, Musk thanked the board and shareholders, saying what Tesla was poised to do was not just “a new chapter in the future of Tesla, but a whole new book.”

Under the deal, Musk will receive the stock in tranches tied to delivering financial and production targets, including 20 million new electric vehicles rolling off production lines, 10 million full self-driving subscriptions​, 1 million Optimus humanoid robots and 1 million robotaxis in service.

The first block of stock gets paid to Musk when Telsa market capitalization reaches $2 trillion with the next nine awarded each time the company’s value rises by another $500 billion, up to $6.5 trillion.

Two additional rises in market capitalization, each of $1 trillion, bringing the value to $8.5 trillion, are required for the final two stock grants to kick in.

While the deal is performance-based, it’s not set in stone — with Musk still in line to earn more $50 billion even if he fails to meet the bulk of the targets — and includes riders for so-called “covered events” with the potential to impact Tesla’s future designs, manufacturing and sales.

These include natural disasters, wars, pandemics and changes to “international, federal, state and local law, regulations or other governmental action or inaction.”

In June 2024, Musk reincorporated Tesla in Texas, the company’s headquarters and center of operations, moving from Delaware six months after a court there struck down a $56 billion pay deal the board awarded to Musk in 2018, ruling it was “unfair” and that Musk held excessive power over the rules and size of the deal.

On the same day, shareholders voted to reinstate the package, at the time the largest in corporate history.

In December 2024, the Delaware judge in the case reaffirmed her ruling in favor of the complainant, shareholder Tornetta, and ordered Musk must return what he had already received from the package.

The board eventually awarded Musk a $29 billion “good faith” package in August, aimed at keeping Musk at the helm, that would see him granted 96 million shares after two years of service in a “senior leadership role” at Tesla.

Musk’s mega-deal on Thursday came three weeks after Tesla reported Tesla reported third quarter profits down 37%, despite a jump in revenue to a record $28.1 billion on stronger sales of its electric cars in the domestic market.

Shareholders approved the pay package with as much as 75 percent support on Thursday.

Tesla CEO Elon Musk has scored a resounding victory as shareholders have approved a pay package of as much as $878bn over the next decade, endorsing his vision of morphing the electric vehicle (EV) maker into an AI and robotics juggernaut.

Shares of Tesla rose more than 3 percent in after-hours trading after the shareholders voted on Thursday. The proposal was approved with more than 75 percent support.

Musk took to the stage in Austin, Texas, along with dancing robots. “What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he said. “This really is going to be quite the story.”

He added: “Other shareholder meetings are like snooze fests, but ours are bangers. I mean, look at this. This is sick.”

Shareholders also re-elected three directors on Tesla’s board and voted in favour of a replacement pay plan for Musk’s services because a legal challenge has held up a previous package.

The vote, analysts have said, is a positive for Tesla’s stock, whose valuation hangs on Musk’s vision of making vehicles drive themselves, expanding robotaxis across the United States and selling humanoid robots, even though his far-right political rhetoric has hurt the Tesla brand this year.

A win for Musk was widely expected as the billionaire was allowed to exercise the full voting rights of his roughly 15 percent stake after the carmaker moved to Texas from Delaware, where a legal challenge has held up a previous pay rise.

The approval comes even after opposition from some major investors, including Norway’s sovereign wealth fund.

Tesla’s board had said Musk could quit if the pay package was not approved.

The vote will also allay investor concerns that Musk’s focus has been diluted with his work in politics as well as in running his other companies, including rocket maker SpaceX and artificial intelligence startup xAI.

The board and many investors who lent their endorsement have said the nearly $1 trillion package benefits shareholders in the longer run, as Musk must ensure Tesla achieves a series of milestones to get paid.

Goals for Musk over the next decade include the company delivering 20 million vehicles, having one million robotaxis in operation, selling one million robots and earning as much as $400bn in core profit. But in order for him to get paid, Tesla’s stock value has to rise in tandem, first to $2 trillion from the current $1.5 trillion, and all the way to $8.5 trillion.

Under the new plan, Musk could earn as much as $878bn in Tesla stock over 10 years. Musk would be given as much as $1 trillion in stock but would have to make some payments back to Tesla.

Oct. 28 (UPI) — Tech mogul Elon Musk launched his own online encyclopedia with his company xAI, calling it Grokipedia as a rival to the non-profit Wikipedia.

Grokipedia, named for xAI’s chatbot Grok, uses Wikipedia as its source and it’s modeled like Wikipedia. But it has sanitized versions of pages about Musk, reporting nothing critical of him. The page says it has 885,279 pages.

The venture launched on Monday, with the site initially crashing then coming back online later. It has been reported by Musk as an improved and less biased version of Wikipedia.

Republican lawmakers and White House AI czar David Sacks have called Wikipedia “hopelessly biased.”

On X, Sacks said, “An army of left-wing activists maintain the bios and fight reasonable corrections. Magnifying the problem, Wikipedia often appears first in Google search results, and now it’s a trusted source for AI model training. This is a huge problem.”

The Wikimedia Foundation, which operates Wikipedia, said in a statement last month, “Wikipedia informs; it does not persuade.”

“Unlike newer projects, Wikipedia’s strengths are clear: it has transparent policies, rigorous volunteer oversight, and a strong culture of continuous improvement. Wikipedia is an encyclopedia, written to inform billions of readers without promoting a particular point of view,” Lauren Dickinson, a spokesperson for the Wikimedia Foundation, said in a statement.

“This human-created knowledge is what AI companies rely on to generate content; even Grokipedia needs Wikipedia to exist,” she added.

On Monday, Musk posted on X that the launch was “Grokipedia version 0.1,” but that “Version 1.0 will be 10X better, but even at 0.1 it’s better than Wikipedia imo.”

ELON Musk’s ex Grimes has left her fans stunned after revealing her very unusual face tattoo.

The performer showed off her interesting new inking on Instagram but fans were immediately left confused.

Many were quick to comment to insist they thought the star had Ringworm as opposed to a new facial inking.

In a brand new selfie, a bare-faced Grimes showed off the tattoo which appeared to mimic a scar on her face.

A light circle has been inked on around her eye prompting much discussion from her followers.

Writing on Instagram about her interesting inking, Grimes said: “Spent like ten years emotionally working up to a face tattoo but I guess I drew on my face too much and literally no one noticed, not even my parents, not even after the video lol.

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“That said I think @glyphomancer is onto something truly novel and innovative with her work esp on face tats- there’s a true beauty, delicacy, and innovation here imo.

“Feel like tats are in a crazy renaissance period that’s sort of under appreciated atm.”

However, her comments were littered with confused fans mistakenly thinking Grimes had ringworm.

One wrote under the snap: “THE RINGWORM?!.”

Another added: “It’s the ringworm on her eye I think.”

Someone else echoed: “That looks like ringworm.”

With a fourth penning: “Only ringworm.”

Ringworm is a fungal infection of the skin that often presents in a ring shape – very similar to Grimes’ inking.

It is often described as an itchy and red ring-like rash.

It can often be treated through antifungal medication or creams and gels prescribed by doctors and pharmacists.

Grimes first rose to fame through being a singer and musician but achieved more notoriety through her marriage to Elon Musk.

She began dating the business magnate in 2018 and welcomed a son with him in 2020, who is called X Æ A-Xii.

A year later, the pair had a daughter via surrogacy and were reported to have welcomed a second son in September 2023.

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Their romance has been on-off since 2021 with Grimes previously stating they were “fluid” whilst also calling Elon her “best friend”.

It is understood that they have been fully separated since 2023 and have both gone on to have other relationships.

Elon Musk’s $56bn pay package from Tesla should have been restored by a vote of the company’s shareholders last year, a Tesla attorney has said to the Delaware Supreme Court in the United States.

The Tesla lawyer made his arguments on Wednesday as one of the biggest corporate legal battles entered its final stage after a lower court judge had in January 2024 rescinded the Tesla CEO’s record compensation. The company is also appealing a ruling by the lower court that rejected as legally invalid a vote by shareholders to restore the pay package.

“This was the most informed stockholder vote in Delaware history,” Jeffrey Wall, an attorney for Tesla, told the justices. “Reaffirming that would resolve this case.”

The case’s outcome could have substantial consequences for the state of Delaware, its widely used corporate law, and its Court of Chancery, a once-favoured venue for business disputes that has recently been accused of hostility towards powerful entrepreneurs.

The Court of Chancery ruling striking down Musk’s pay has become a rallying cry for Delaware critics. Chancellor Kathaleen McCormick ruled that the Tesla board lacked independence from Musk when it approved the pay package in 2018 and that shareholders lacked key information when they voted overwhelmingly in favour of it. As a result, she applied a demanding legal standard and found the pay unfair to investors.

Musk did not attend the arguments, which were held in a special court to accommodate the 65 people in attendance, mostly lawyers.

The defendants, current and former Tesla directors, denied wrongdoing and said McCormick misinterpreted the facts and the law.

Dexit

Tesla argued in Dover, Delaware that the five justices on Delaware’s high court had three avenues to reverse the lower court ruling.

They could find that Musk, who owned 21.9 percent of Tesla stock in 2018, did not control the board pay negotiations and that shareholders were fully informed when they voted to approve it that year. They could determine that rescinding the pay was an improper remedy because it did not undo the work that Musk had done or the gains that shareholders had received. Or they could determine that last year’s vote demonstrated shareholders wanted to accept the pay deal, despite the legal flaws.

“Shareholders in 2024 knew exactly what they were voting for,” Wall said.

Greg Varallo, an attorney for Richard Tornetta, the small investor who brought the case in 2018, said if the court accepted ratification, it would allow a party to change the outcome after a court case had run its course. “Lawsuits would be interminable”, he told the justices.

Varallo tried to convince the justices the lower court ruling was a result of careful fact-finding and based on settled law. “There is nothing extraordinary about this trial opinion,” he said. “What makes it truly extraordinary is that it addresses the largest pay package in human history, awarded to the richest man on earth, who is also one of the most powerful men on earth.”

After the Musk pay ruling, large companies, including Tesla, Dropbox, and the venture capital firm Andreessen Horowitz, switched their legal homes to Texas or Nevada, where courts are friendlier toward directors. Delaware lawmakers responded to the corporate departures, a trend known as “Dexit,” by overhauling its corporate law.

If Musk loses the appeal, he will still reap tens of billions of dollars in stock from the electric vehicle (EV) company, which agreed in August to a replacement deal if his 2018 plan is not restored. Tesla has said the replacement plan will cost $25bn or more in accounting charges.

The company said the replacement award was meant to focus the attention of Musk, who said earlier this year that he was forming a new US political party, on transitioning Tesla to robotics and automated driving. Tesla is now incorporated in Texas, where it is far more difficult for a shareholder to challenge board decisions.

New pay plan

Tesla’s board last month proposed a $1 trillion compensation plan, highlighting confidence in Musk’s ability to steer the company in a new direction, even as Tesla loses ground to Chinese rivals in key markets amid softening EV demand.

The justices are considering the appeal of the pay ruling as well as the $345m legal fee that McCormick ordered Tesla to pay to the attorneys for Tornetta, who held just nine Tesla shares when he sued to block the pay deal. The court typically takes months to rule.

Tesla estimated in 2018 that the stock options plan would be worth $56bn if the company met operational and financial goals, which it did. Because the stock continued to appreciate, the options are currently worth closer to $120bn, by far the largest executive compensation ever. Musk is the world’s richest person with a fortune of around $480bn, according to Forbes.

The defendants have argued that McCormick erred in finding social and business ties to Musk compromised their independence, and said Tesla shareholders were informed of the economic terms of the pay deal before they approved the plan. The directors said she should have reviewed the pay package under the “business judgment” standard, which protects directors from second-guessing by courts.

The directors have long argued the pay package performed as hoped – it focused the attention of Musk, a serial entrepreneur, and he transformed Tesla from a startup into one of the world’s most valuable companies.