Tesla awards Elon Musk a multi-billion-dollar share incentive to keep him as CEO
The EV giant has handed the CEO 96 million shares, a move that comes just six months after a judge struck down a previous, even larger compensation deal worth $86 billion, following a lawsuit filed by a Tesla shareholder.
Tesla has seen significant sales drops in recent months, losing a quarter of its value, and suffering major brand damage following Elon Musk's time heading up the Department of Government Efficiency at the White House.
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Perth Now
an hour ago
- Perth Now
Amazon technology tapped for regional broadband boost
Regional Australia is set for a connectivity boost, with a tech giant partnering with the National Broadband Network to deliver city-quality internet. About 300,000 rural and regional premises would benefit from Amazon's Project Kuiper filling gaps in the national network from mid-2026. A rival to Elon Musk's Starlink, Kuiper uses low-earth orbit satellite technology to provide internet from space. Government ministers labelled Tuesday morning's announcement as a "game-changer". The Amazon technology will be phased in across the next four years, transitioning from the ageing Sky Muster satellites set to be decommissioned in the early 2030s. "Whether you live in Sydney or on the edge of a regional town (or) on a remote cattle station, every Australian deserves secure, resilient, fast and affordable broadband," NBN Co chief executive Ellie Sweeney said. "Those Sky Muster satellites have served remote Australia with distinction over the last decade, but times change and technology evolves, and Project Kuiper is one of the finest examples we think of what's possible, where innovation meets that ambition." NBN Co will soon begin consulting with stakeholders including regional communities to shape what speeds will be offered and wholesale pricing options. Existing NBN satellite customers might be offered equipment and professional installation at no cost. The Amazon partnership would be funded by NBN Co and won't require any taxpayer funds, Ms Sweeney said. Communications Minister Anika Wells said regional communities would be consulted closely on the transition. "Being more connected means Australians living anywhere will be better off, whether that is working from home, managing a regional business, accessing telehealth, video conferencing or online learning," she said. Kuiper has launched 78 satellites since it kicked off in April, but is set to ramp things up with its initial 'constellation' to feature 3200. Bush advocates, including Better Internet for Rural, Regional and Remote Australia, said it was a major step in the right direction. "For people in the bush, connectivity isn't just convenient, it's critical," BIRRA head Kristy Sparrow said. "Choosing to live in regional Australia should never mean being excluded from accessing reliable and affordable telecommunications ... the deal introduces real consumer choice and brings much-needed competition and affordability." Starlink's satellite service has become increasingly popular in parts of regional Australia, where internet is provided through the slower copper network instead of fibre. But a regional telecommunications review released in December found the foreign ownership of systems such as Starlink raised questions about data security and sovereign risks. It prompted a $3 billion boost to complete NBN service upgrades to about 620,000 homes and businesses.
News.com.au
3 hours ago
- News.com.au
Elon Musk's absurd Tesla pay packet to stop him from leaving
Elon Musk was awarded a new $US29 billion ($A44.7bn) pay package by Tesla's board on Monday that vests in two years — a vital move to keep the mogul at the helm during a crucial pivot from its struggling core auto business to robotaxis and humanoid robots. The deal, announced in an SEC filing, grants Musk 96 million new shares in Tesla, which has been in a prolonged sales slump that has hurt the company's stock performance this year. Shares were up two per cent in mid-day trading. 'While we recognise Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging … we are confident that this award will incentivise Elon to remain at Tesla,' members of a special committee formed to consider Musk's pay said in the filing. Last year, a Delaware judge nixed Musk's original stock-based compensation package, which was worth more than $A77.2 billion, after finding it was too excessive and unfair to shareholders. Musk was so incensed by the decision that he moved Tesla's state of incorporation from Delaware to Texas. Musk, who is already the world's richest person with a real-time net worth of $A614.7 billion according to Bloomberg, filed an appeal in March challenging the Delaware judge's ruling. Tesla's special committee said there would be no 'double dip' if the original deal is eventually restored. Instead, the $A44.7 billion package will either be voided or offset. The special committee consists of just two members – Tesla chair Robyn Denholm and board director Kathleen Wilson-Thompson. Musk is already Tesla's largest individual shareholder and owns roughly 13 per cent of the company. The announcement removed a key 'overhang' on Tesla's shares and should help calm investors with questions about Musk's commitment, according to Wedbush analyst Dan Ives. 'Musk remains Tesla's big asset and this comp issue has been a constant concern of shareholders once the Delaware soap opera began,' Ives wrote in a note to clients. Ives added that it is critical for Tesla's board to 'get this long-term compensation strategy in place prior to the company's November 6th shareholder meeting which would address the elephant in the room.' According to the deal's terms, Musk's new shares will only vest if he remains a key executive at Tesla through at least 2027. The shares also come with a five-year lockup, with Musk only able to sell to cover tax payments. Critics have long alleged that Musk is overpaid compared to other Big Tech CEOs, such as Microsoft's Satya Nadella and Google's Sundar Pichai, who have led their companies to share price growth without monster pay packages. Just a few executives have secured deals worth $1.5 billion or more annually in recent years, according to the Wall Street Journal. That includes Palantir boss Alexander Karp, who earned more than $A9.2 billion last year, and Hock Tan of chip maker Broadcom, who earned $A1.7 billion. Musk will need to redouble efforts to lead a turnaround at Tesla. Analysts have pointed to Tesla's ageing car line-up and increased competition from Chinese automakers like BYD as key obstacles for the company. Musk's political adventures, including his work with the Department of Government Efficiency and public clashes with President Trump, have also worried stockholders. The Tesla CEO has cited AI initiatives, such as Tesla's self-driving Robotaxis and Optimus humanoid robots, as central to its long-term business strategy.
Daily Telegraph
3 hours ago
- Daily Telegraph
Why Hyundai's boss says it is doing a ‘terrible job'
Don't miss out on the headlines from On the Road. Followed categories will be added to My News. Hyundai's new Australian boss says the brand has 'ground to make up' after doing a 'terrible job' selling electric cars in Australia. Don Romano took over as Hyundai's Australian chief executive in March after a stint in Canada, where the brand has a strong share of electric vehicle sales. But in Australia, Hyundai's EV performance is less impressive. MORE: EVs embrace wireless charging Don Romano, chief executive for Hyundai Motor Company Australia. Picture: Supplied The critically acclaimed Hyundai Ioniq 5 and Ioniq 6 duo attracted just over 500 combined sales in the first six months of the year, placing them well behind rivals such as the Tesla Model Y (10,431) and Model 3 (3715), BYD Sealion 7 (3756) and Seal (1609), Kia EV5 (2765), MG4 (2268), Geely EX5 (1845) and Polestar 4 (676). 'We have ground to make up,' Romano says. MORE: The problem buying cars in Australia 2025 Hyundai Ioniq 9. Picture: Supplied 'We do a terrible job with our EVs … we are not doing the job we should be. 'Our market share of electric vehicles is extremely low relative to our market share of total vehicles and the only explanation for that is that we haven't put enough focus on it because I can see other electric car companies that are … doing a much better job with their EVs than they do with their ICE [internal combustion engine vehicles]. 'We're the opposite.' MORE: US giant's huge move in Australia Romano believes Hyundai's previous managers made mistakes, including a decision to bypass the brand's dealer network to sell cars such as the Ioniq 5 directly to customers. 'We went around our dealers,' Romano says. 'So, we have a job to do to get our dealers back in the game and to let them know that no, we are going through our dealer body and that you are an important part of the distribution process.' Romano's experience in North America differs from Australia. In the US and Canada, General Motors has the largest EV share behind Tesla. But here, Chinese brands such as BYD have an enormous role to play in the market, making competition tough for Hyundai. MORE: Great Aussie petrol lie exposed Indrakumar Prasanna and Krishani Prasanna bought a BYD Seal in May 2024. Photo: Thomas Wielecki Hyundai's cheapest Inster EV starts from about $43,000 drive-away, roughly $10,000 more than the BYD Dolphin. The Ioniq 5 SUV is about $15,000 more than BYD's Sealion 7, and the Ioniq 6 sedan starts $27,000 upstream from the equivalent BYD Seal. 'The real issue when you talk about competitiveness is probably when you look at Chinese EVs, and the question I'd have is 'how long can they sustain that low price' when we're all using the same materials and the same equipment?',' he says. 'Eventually, when you look at the same systems that are used to build these cars and the same equipment and the same material, eventually, it comes to an equilibrium where we're all having on the same cost factor that we're going to have to all live with. 2025 Tesla Model Y, BYD Sealion 7 and Volkswagen ID. 4 Pro. Picture: Mark Bean 'And then the pricing really just comes down to what it takes to distribute the cars and market the cars. So I don't think any change in our competitive pricing is something that is a long-term issue. I think we're going to ultimately all be in the same bandwidth on a car-by-car basis. 'I don't know how they do it other than, you know, I read the same things you do about government intervention and support … 'It's one big world that we all live in and we're all going to be living in the same economic environment, so whatever advantage one country has over another, and I've seen this happen in my 40 years, where it used to be cheaper to build in one country than another, and then suddenly it's just as expensive, I think that's ultimately going to happen. 'Whether that's in my lifetime or not, that I can't answer. But for right now it appears they have it.' Originally published as Why Hyundai's boss says it is doing a 'terrible job'
