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Tesla Shareholders Approve $1 Trillion Performance Package for Elon Musk

The vote sets an unprecedented, conditional incentive tied to extreme growth goals.

Overview

  • Tesla said more than 75% of votes cast at Thursday’s annual meeting in Austin backed the 10‑year equity award.
  • The package grants up to 423.7 million additional Tesla shares in 12 tranches if targets are met, including a market value of $8.5 trillion and ambitious operational and financial milestones.
  • Major institutions and proxy advisers, including Norway’s sovereign wealth fund, ISS and Glass Lewis, opposed the plan over size, dilution and key‑person risk, but the measure still passed.
  • Tesla framed the award as essential to retain Musk and drive a pivot toward autonomous vehicles, robotaxis and humanoid robots; full vesting would lift his voting power to about 29%.
  • Tesla shares fell about 4–5% earlier this week after NBIM’s opposition and closed down 3.5% on Thursday before rising as much as 2.9% after hours following the approval.