Overview
- Roughly 75% of votes at Tesla’s annual meeting in Austin backed the package, clearing a path for Musk to receive stock awards only if milestones are met.
- The plan spans 12 tranches with market-cap thresholds starting at $2 trillion and rising to $8.5 trillion, alongside operational targets including 20 million vehicles, 10 million FSD subscriptions, 1 million robotaxis and 1 million Optimus robots.
- If fully achieved, the grants could lift Musk’s stake toward roughly 25%, though company filings indicate he could still realize substantial value even if many goals are missed.
- Proxy advisers ISS and Glass Lewis and major investors such as Norway’s sovereign wealth fund and CalPERS opposed the plan, while Tesla’s board argued it was necessary to retain Musk’s focus.
- The vote follows a Delaware court’s voiding of Musk’s 2018 award and Tesla’s reincorporation in Texas, with critics warning of governance, dilution and safety risks tied to aggressive autonomy and robotics targets.