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Tesla Investors Approve Musk’s Up-to-$1 Trillion, 12-Tranche Pay Plan

The vote conditionally backs an AI- and robotics-focused strategy that unlocks awards only if Tesla hits extreme valuation and deployment targets.

Overview

  • Shareholders voted by more than 75% to authorize a performance-based award that could grant Elon Musk up to 423.74 million shares and lift his stake to roughly 25%.
  • The plan vests across 12 stages tied to milestones that include a market capitalization rising in steps to $8.5 trillion by 2035, one million robotaxis, one million humanoid robots, and cumulative deliveries of 20 million vehicles.
  • Financial hurdles include sustaining $400 billion in adjusted EBITDA at a $6.5 trillion market value, and Musk must remain in a top role for at least 7.5 years for initial vesting.
  • Major investors and proxy advisers such as Norway’s sovereign wealth fund, ISS and Glass Lewis opposed the deal, while Texas incorporation let Musk vote his roughly 15% stake after Delaware voided his 2018 package.
  • The package underscores Tesla’s pivot toward autonomy and humanoid robots even as technical and regulatory questions persist, and a separate xAI investment item drew more yes than no with many abstentions for further consideration.