Is Elon Musk leaving Tesla this week?

This is in no way a science fiction scenario. Elon Musk could leave Tesla if his salary demands are rejected.

Members of Tesla’s board of directors have made a call to the company’s shareholders, urging them to validate a salary agreement for CEO Elon Musk. So far, nothing too alarming, you might think, considering the profits the American manufacturer is raking in. Just to clarify, we are talking about several billion dollars in Musk’s case! Specifically, 56 billion dollars, according to board chair Robyn Denholm.

But how did we arrive at this absurd situation? In 2018, a special agreement was made by shareholders with Elon Musk, under which he was not to receive any salary from the company but would be compensated later based on meeting Tesla’s growth and profit targets. As you might have guessed, the brand has blown past all its projections with a valuation of over 700 billion dollars. It’s now time to cash in because, believe it or not, launching rockets costs a fortune, and Musk’s personal finances are in dire need of a little boost.

Who is in a strong position, Musk or Tesla?

To support this rather surreal demand, Ms. Denholm clarified in an open letter to Tesla shareholders that Elon Musk would not be lacking in opportunities if he were to leave, seriously jeopardizing the future of the manufacturer. In short, Tesla without Musk is not really Tesla anymore.

If shareholders give their approval on June 13, Elon Musk will not leave the meeting with a well-filled briefcase. The compensation consists of stock options that Musk would be required to hold for five years. A timing that ultimately works for everyone because while Tesla’s medium-term future is secured, its stock valuation is on a downward trend. There are also whispers of political ambitions for Elon Musk, who is known to be very close to Donald Trump. A presidential term of 4 years would complete the cycle.

READ ALSO: Rivian mocks the Tesla Cybertruck with its R1