Tesla has created a special committee to evaluate CEO Elon Musk‘s pay, which may lead to a new stock options plan.
Sources familiar with the situation said the committee comprised Tesla board Chair Robyn Denholm and independent board member Kathleen Wilson-Thompson, Reuters reported, citing the Financial Times.
In case Musk’s 2018 compensation deal isn’t reinstated through a court appeal, the special committee will explore other ways to reward him for his past contributions. Any new stock option plan would depend on Tesla meeting certain financial, operational, and stock performance goals.
Last month, Tesla confirmed that the board had set up a special committee to review compensation matters related to Musk, but did not share specific details. The move came after Musk launched an appeal in March to bring back his $56 billion pay package, arguing that a judge made legal mistakes in canceling it.
Earlier this month, Chair Robyn Denholm dismissed a report claiming the board had contacted executive search firms to find a possible replacement for Musk.
Tesla’s strategic shift toward AI and robotics
Tesla is currently at a key moment as Musk shifts focus from building a low-cost electric vehicle to developing robotaxis and humanoid robots. This move signals Tesla’s transformation into more of an AI and robotics company rather than just an automaker.
Tariff risks
Previously, Tesla had warned that the company and other major American exporters could face retaliatory tariffs due to President Donald Trump’s aggressive trade policies.
Many U.S. businesses have expressed concerns about Trump’s tariffs, but the EV company’s statement stands out because the company is led by Musk, a close ally of the president.
House Republicans propose tax plan targeting Biden-era climate incentives
Republicans in the U.S. House of Representatives unveiled earlier this week a sweeping tax reform proposal that would eliminate several climate-related incentives introduced under the Biden administration.
A related provision, set to take effect in 2027, could bar tax credits for vehicles that use battery technology licensed from Chinese companies, even if deployed by American firms like Ford or Tesla.
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