Tesla and its CEO Elon Musk made a $55 billion deal in 2018, which would grant Musk shares upon the company reaching certain sales targets, leading to major disputes among the investors. This deal, if Tesla met its targets, would secure Musk a substantial income. However, major investor CalPERS argues that the deal is disproportionate to the company’s growth rates and should not be implemented. CalPERS CEO Marcie Frost has made serious criticisms and stated that necessary steps will be taken to cancel the agreement.
Response from Elon Musk
On the other hand, Elon Musk responded harshly to these criticisms. Musk claimed that all conditions of the deal had been met and that CalPERS had not kept its promises. In a statement on the social media platform X, Musk dismissed CalPERS’ criticisms and emphasized that all terms of the deal had been fulfilled.
This dispute has resonated widely among investors of Tesla and in the tech world. The future of the agreement and its effects on Tesla’s management strategies will become clearer in the coming periods.