WSJ report spotlights Tesla pay clause as SpaceX merger odds sit at 17.5%

A Wall Street Journal report highlighted a change-of-control clause in Elon Musk's Tesla compensation package that could materially increase his payout if Tesla merges with or is acquired by another company, including in speculation around SpaceX. The Journal said the package could be worth up to $824 billion rather than the previously cited $1 trillion because Tesla's outstanding share count has increased since investors approved the plan in November. Under the provision, half of the operational milestones would be treated as met in a merger or takeover, leaving valuation thresholds and the higher of the deal price or Tesla's pre-transaction market value to determine the final award. The report comes as prediction markets assign a 17.5% chance of a formal Tesla-SpaceX merger announcement by December 31, down slightly from 18% a week earlier, and as Musk has rejected one related report as "Absurdly Fake News."

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.