{"id":37742,"date":"2025-11-05T18:58:36","date_gmt":"2025-11-05T18:58:36","guid":{"rendered":"https:\/\/financialrush.com\/?p=37742"},"modified":"2025-11-05T18:58:36","modified_gmt":"2025-11-05T18:58:36","slug":"musks-1tn-bonus-tests-investors-willingness-to-live-without-him","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=37742","title":{"rendered":"Musk\u2019s $1tn bonus tests investors\u2019 willingness to live without him"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=162ba030-e142-444b-ab1c-34a05b049759\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Tesla investors decide by Thursday whether Elon Musk should be eligible for a contentious $1tn bonus. The question is partly financial, and partly philosophical. For many, it\u2019s both.<\/p>\n<p>A shareholder who simply wants their Tesla stock to rise in price ought to vote in favour. The <a href=\"https:\/\/www.ft.com\/content\/2bcd5e08-30ef-43bf-bd5c-f205df0f946d\" data-trackable=\"link\">number at stake is astronomical<\/a>, but Musk only gets it if he hits very tough targets. If he fails to get his ransom and visibly zones out \u2014 or quits \u2014 Tesla\u2019s $1.4tn market capitalisation, laughably <a href=\"https:\/\/www.ft.com\/content\/be23dfb1-87c1-4125-b8a2-532caf406bab\" data-trackable=\"link\">detached from financial fundamentals<\/a>, could collapse.<\/p>\n<p>A shareholder with broader concerns might think differently. They might want to uphold orthodox pay practices at companies across their portfolio. Or discourage outlandish individual fortunes. In that case, they would be more likely to vote against. If Musk quits, so be it. Tesla investors lose; the universe wins.<\/p>\n<p>Norway\u2019s state pension fund is an example of where the line blurs. Its stake in Tesla is worth about $12bn. But that\u2019s just 0.8 per cent of its total equity portfolio. The cost of other companies aping Tesla, but with less conditionality, could be even higher. Norway <a href=\"https:\/\/www.ft.com\/content\/bf6e3961-e1b6-4406-afd8-98bdd91d8130\" data-trackable=\"link\">plans to vote No<\/a>.<\/p>\n<p>Since Musk has a 15 per cent stake and can himself vote, the odds are in his favour. Index funds BlackRock and Vanguard, with a combined 12 per cent, have reason to think like the Norwegians, but may not want to rock the boat. As the deadline looms, the question for each investor isn\u2019t whether Musk is deserving, but how much they can afford to do without him.<\/p>\n<p><a href=\"https:\/\/www.ft.com\/content\/mailto:john.foley@ft.com\" data-trackable=\"link\">john.foley@ft.com<\/a><\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/162ba030-e142-444b-ab1c-34a05b049759\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this&hellip;\n","protected":false},"author":5,"featured_media":37743,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-37742","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/37742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37742"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/37742\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/37743"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}