Treasury Secretary Scott Bessent has praised Elon Musk, the CEO of Tesla Inc., while discussing his controversial $1 trillion compensation package.
Dismisses Rumors of Altercations With Musk
When asked about his rumored past altercation with Musk, Bessent dismissed the incident as “old news” and added that both he and Musk were “very passionate about what needed to be done with government.” He also joked that the altercation “can’t be true because he didn’t have a collar.”
Bessent commended Musk’s efforts in setting a trajectory for downsizing government, which has led to a decrease in spending over the past two quarters. He expressed his intention to continue this trend, saying “We’re going to keep it down.”
Musk’s Pay Decisions For ‘Shareholders To Decide’
Regarding Musk’s pay package, which is set for a vote, Bessent stated that it’s great to have Musk back in the private sector and acknowledged him as “one of the great entrepreneurs” of our generation. However, he emphasized that the decision on Musk’s compensation is “up for the shareholders to decide.”
Bessent highlighted Musk’s impressive track record of innovation across industries, noting that “The amount of value that he’s created for his investors and for his shareholders is phenomenal.” He also acknowledged the range of industries in which Musk has made an impact.
Tesla’s $1 Trillion Pay Package
Musk’s compensation plan is contingent on Tesla hitting aggressive performance targets, including:
- A market cap of $8.5 trillion
- Selling 20 million cars a year
- Rolling out 1 million robotaxis
- Deploying 1 million Optimus humanoid robots
The package, worth nearly $1 trillion in stock awards, will be put to a shareholder vote at Tesla’s annual meeting.
Current Market Performance
Tesla shares were down 5.15% on Tuesday, closing at $444.26, but have since risen by 0.74% overnight. The stock is performing well in terms of momentum and quality, with a favorable price trend in the short, medium, and long terms.