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Tesla Investors Approve Musk’s Up-To-$878 Billion, Performance-Tied Pay Plan

The approval ties Musk’s potential payout to ambitious AI milestones with decade-long valuation targets.

Overview

  • At the 2025 annual meeting in Austin, shareholders passed the package with roughly 75% support.
  • The plan vests across 12 stock tranches totaling about 423 million new shares, which could lift Musk’s stake from roughly 15% to about 25% if all targets are met.
  • Milestones include delivering 20 million vehicles over the next decade, operating 1 million robotaxis, and hitting market-cap steps from above $1.5 trillion to $2–$8.5 trillion.
  • The agenda also features proposals to drop supermajority voting and to consider a Tesla investment in Musk’s AI startup xAI, drawing governance and conflict-of-interest concerns from some major investors.
  • After the vote, Musk showcased the Optimus humanoid robot, said current unit cost is about $20,000, and suggested progress on FSD approvals and a potential Cybercab production start targeted for April 2026.