After six years of litigation, Elon Musk has exercised his 2018 Tesla compensation package, receiving shares representing nearly 20% of the company's voting power. While the paper value of these holdings runs into the hundreds of billions of dollars, a share lock-up prevents Musk from converting them to cash. The deal's real prize is an unassailable voting position that definitively settles the question of who controls Tesla.
Tesla's 2025 performance compensation plan includes a change-of-control clause that has raised governance concerns. According to the article, a merger involving Tesla and SpaceX could allow operating milestones to be disregarded, with compensation determined only by market value. The clause could create a path for Musk to receive up to $1 trillion without meeting the original performance targets.