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Tesla Investors Approve Musk’s 10-Year Performance-Based Pay Plan Worth Up to $1 Trillion

Shareholders endorsed a decade-long stock award that vests only if Tesla meets aggressive AI, robotics and valuation milestones.

Overview

  • More than 75% of votes at Tesla’s Austin meeting backed the package, setting a contingent roadmap for Musk’s compensation over the next decade.
  • The award pays in 12 tranches of stock tied to market-cap thresholds starting around $2 trillion and rising to $8.5 trillion, with no salary component.
  • Operational targets include producing 20 million vehicles, reaching 10 million Full Self-Driving subscriptions, deploying 1 million robotaxis and 1 million Optimus humanoid robots, and profit goals cited at up to $400 billion.
  • If fully achieved, the plan could add roughly 423 million shares to Musk’s holdings and lift his stake toward about 25%, though partial progress could still be worth tens of billions.
  • Proxy advisers ISS and Glass Lewis and major investors including CalPERS and Norway’s sovereign wealth fund opposed the deal, which follows a Delaware court voiding Musk’s 2018 award and Tesla’s subsequent move to Texas.