Particle.news
Download on the App Store

Tesla Investors Approve Up to $1 Trillion Performance-Based Pay Plan for Elon Musk

The decade-long, 12‑tranche award ties stock grants to aggressive market‑cap, vehicle output, robotaxi, humanoid‑robot goals despite opposition from major funds.

Overview

  • Tesla said roughly 75% of votes cast at its Austin annual meeting backed the package, after which Musk appeared on stage with Optimus robots to thank supporters.
  • The plan unlocks stock in stages tied to steep milestones, including lifting market value to $8.5 trillion, delivering 20 million vehicles, deploying large fleets of robotaxis and Optimus units, and reaching up to $400 billion in adjusted profits.
  • Full achievement would add about 12 percentage points to Musk’s ownership, potentially taking his stake to roughly 25–29% and increasing his voting control.
  • Proxy advisers ISS and Glass Lewis and major investors such as Norway’s sovereign wealth fund and CalPERS opposed the award, while Tesla’s board mounted a hard push for approval and warned of losing Musk’s leadership.
  • Shareholders reelected directors and gave a nonbinding nod to a potential Tesla investment in xAI with many abstentions as the board reviews next steps; market reaction was mixed, with shares slipping on Friday.