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Elon Musk’s new $29B Tesla stock award gets strange synopsis from governance firm

Did CGI not realize that Tesla Shareholders supported Musk being paid not once, but twice?

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Credit: TED

Elon Musk was recently awarded around $29 billion in Tesla stock as the company’s Board of Directors is attempting to get its CEO paid after his original pay package was denied twice by the Delaware Chancery Court.

But a new and strange synopsis from the Corporate Governance Institute (CGI) says the award is potentially a strength move to “endorse the will of a powerful CEO.” The problem is, in the same sentence, the firm said the new award brings up a “question of whether the board exists to steward a company in the interests of all stakeholders.”

The problem with their new analysis of Musk’s pay package is that shareholders voted twice on Musk’s original pay package of $56 billion. They voted to give Musk that sum on two separate occasions.

Musk’s original $56 billion pay package was approved by shareholders twice; once in 2018 and once again last year. Last year’s vote was in response to Delaware Chancery Court Kathaleen McCormick’s decision to revoke the “unfathomable sum” from Musk.

Shareholders still showed support for Musk getting paid. Tesla said in its new award to the CEO that this is a way to give him compensation for the first time in seven years.

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CGI said in its note (via TipRanks):

“When a board builds its strategy around a single individual, it creates a concentration risk, not just operationally, but culturally and ethically. If that individual becomes a source of volatility, the company becomes fragile by design.”

What’s strange with this type of narrative is the fact that Tesla’s valuation has skyrocketed with Musk at the helm. Go back to 2020, and the stock is up over 200 percent. Since Musk’s $56 billion pay package was introduced in 2018, shares are up well over 1,000 percent.

Tesla engineer explains why Elon Musk deserves new pay package

Musk’s 2018 pay package was also not awarded to him without performance-based incentives. He was required to reach certain growth goals, all of which were accomplished through the launch of new vehicles and the advancements of its driver-assistance suites, like Autopilot and Full Self-Driving.

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It is tough to agree with CGI’s perception of Musk’s new pay plan, especially as it is much less than what shareholders voted on twice. Musk deserves to be paid for his contributions to Tesla.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Neuralink is planning to launch US trials translating thoughts into text

The trial could help pave the way for people with speech impairments to communicate more quickly and efficiently.

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Credit: Neuralink

Neuralink, Elon Musk’s brain-computer interface company, is reportedly planning to start a US clinical trial in October to use its technology to translate thoughts directly into text. 

The trial was approved by the FDA under an investigational device exemption, and it could help pave the way for people with speech impairments to communicate more quickly and efficiently.

Thought-to-text technology

The upcoming trial aims to read speech directly from the brain, enabling participants to transmit words without moving their mouths or using a keyboard, as noted in a report from Bloomberg News.

DJ Seo, Neuralink’s president, told an audience at the Korea Foundation for Advanced Studies in Seoul that the company hopes to demonstrate communication with large language model AI platforms “at the speed of thought,” potentially faster than spoken speech.

“We think that it’s actually possible to demonstrate abilities to speak to the latest AI model, or LLM models, at the speed of thought, even faster than how you’re speaking, and being able to potentially get that information back through your AirPods, effectively closing the loop,” Seo stated.

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Production ambitions

Ultimately, Seo described the trial as a stepping stone toward broader human enhancement and consumer-facing applications, beyond the company’s initial focus on medical conditions like ALS, stroke, blindness, and Parkinson’s disease.

While initial implants will focus on patients with severe speech impairments, Neuralink plans to eventually expand to healthy individuals by 2030. The company aims to scale to 20,000 implants per year by 2031.

“We’re currently envisioning a world where, in about 3 to 4 years, there will be someone who’s otherwise healthy who’s going to get a Neuralink. If you’re imagining saying something, we would be able to pick that up,” the executive noted.

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Elon Musk and Donald Trump reconcile publicly at Charlie Kirk memorial

The reconciliation fulfilled Kirk’s longtime wish for the two men to mend relations.

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Credit: Elon Musk/X

Elon Musk and U.S. President Donald Trump interacted with each other publicly for the first time since their feud, sharing a handshake and conversation during a memorial service for slain conservative activist Charlie Kirk. 

The reconciliation fulfilled Kirk’s longtime wish for the two men to mend relations, something he had openly discussed prior to his passing.

Kirk’s wishes for Musk and Trump

As noted in a CNN report, Kirk had long positioned himself as an intermediary between Musk and Trump, maintaining close ties with both figures even at the height of their falling out. He highlighted this in a conversation with commentator Megyn Kelly in June. “I know both these guys … I am hopeful, optimistic, and will do everything I possibly can to try and bring this back together,” Kirk said. 

Kirk had also spoken highly of both men. On his podcast, he described Musk’s acquisition of Twitter as “the most important purchase since the Louisiana purchase.” He also praised Trump’s MAGA movement. 

Kirk reportedly texted Musk frequently, urging him to avoid rhetoric that could harm Trump’s agenda. Musk reportedly was receptive to Kirk’s feedback, despite his announcement that he would be launching a third political party in the United States. His prediction proved accurate when Musk and Trump were sighted side-by-side during his memorial service, where they spoke briefly and shook hands.

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Signs of reconciliation

Kirk’s memorial became a symbolic turning point. Andrew Kolvet, executive producer of Kirk’s podcast, posted a photo of Musk and Trump together, noting Kirk’s hope that the two would reconcile “for Charlie.” Musk himself echoed the sentiment, sharing a similar photo with the words “For Charlie,” followed by the White House X account posting the same line later.

Musk has since engaged more positively with Trump on social media, while his America Party PAC shared images of Musk embracing Kirk’s widow, Erika. After her speech calling for forgiveness, Musk posted a passage from the Lord’s Prayer: “Forgive us our trespasses as we forgive those who trespass against us.” 

Kirk had shared his wish for such an outcome in the past. “Knowing both of these men and knowing President Trump much better than Elon, but knowing both of these men, I can tell you I think that there’s going to be a peace treaty moment, a calming down, a moment where both sides come together and we know that we are stronger against the left than we are divided,” Kirk had stated over the summer.

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Tesla says it is working on rides for the handicapped and disabled with Robotaxi

Tesla CEO Elon Musk confirmed that this was a focus by responding, “Absolutely,” to the embedded post on X above. Tesla said it is developing its own “wheelchair-accessible vehicle,” also known as a WAV. 

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Credit: Teslarati

Tesla says on its Robotaxi app that it is working on enabling “accessibility rides” that would give the handicapped and disabled the ability to hail a Robotaxi to get to an appointment.

While Robotaxi will obviously revolutionize the way we travel for our work commutes, daily activities, and other things, but there is true potential to enable serious change for those who cannot drive.

Autonomous transportation would make life easier for those who are unable to obtain a driver’s license. Of course, with today’s ride-sharing platforms, things are much easier than they once were.

However, rides from Uber and Lyft, while plentiful, always have an opportunity to be unavailable in some regions, especially rural ones, due to a lack of drivers.

Robotaxi aims to solve this problem through autonomous transportation, a technology that Tesla has been developing for years.

However, new language in the Robotaxi app shows that Tesla is working on a solution for people who need rides for medical reasons, and it uses a picture of the Robovan to hammer this point home:

Tesla CEO Elon Musk confirmed that this was a focus by responding, “Absolutely,” to the embedded post on X above. Tesla said it is developing its own “wheelchair-accessible vehicle,” also known as a WAV.

This is likely the Robovan, which was unveiled on October 10 at the Robotaxi event last year:

Tesla unveils the Robovan at ‘We, Robot’ event

It is pretty interesting to see two Musk ventures working on solutions for those who are physically impaired or have other disabilities. With Tesla, Robotaxi will unlock immense potential for those who are unable to drive themselves, addressing a genuine need in today’s world.

Additionally, Neuralink is continuing its development of technology to fight against various physical and mental disabilities. A great question to ask is, “Which will be more beneficial for humans?”

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