Overview
- More than 75% of votes at Tesla’s Austin meeting backed the package, which pays out only if specified performance milestones are achieved.
- The SEC-filed plan requires successive market-cap gains up to $8.5 trillion by 2035 plus steep operational goals including 20 million vehicles, 10 million Full Self Driving subscriptions, 1 million Robotaxi and 1 million Optimus units, and $400 billion in profit across four consecutive quarters.
- If fully vested, the award could roughly double Musk’s ownership stake toward about 30%, strengthening his de facto control of the company.
- Large institutions such as CalPERS and Norway’s sovereign wealth fund opposed the plan over governance concerns, with critics flagging a board seen as close to Musk and discretion to modify terms; Pope Francis also criticized the payout as excessive.
- The vote follows a 2024 Delaware court decision voiding a prior $56 billion plan and Tesla’s shift of its legal domicile to Texas, as the company’s market value hovers above $1.5 trillion despite recent sales softness and unproven robotaxi ambitions.