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Tesla Shareholders Approve 12‑Tranche, $1 Trillion Pay Plan for Elon Musk

The vote affirms Musk’s AI pivot despite unresolved governance and legal questions.

Overview

  • Roughly 75% of votes cast at Tesla’s Austin annual meeting backed the 10‑year plan, with Musk celebrating on stage alongside Optimus humanoid robots.
  • The award vests across 12 milestones tied to steep goals, including an $8.5 trillion market value, 20 million vehicles, up to $400 billion in annual profits, robotaxis in commercial operation, Optimus deliveries and FSD subscriptions.
  • If all targets are met, Musk could gain about 12% more of Tesla’s equity, lifting his stake to roughly 25–29% and consolidating voting power after he argued he needs influence to build a large robot program.
  • Proxy advisers ISS and Glass Lewis and major investors such as Norway’s sovereign fund and CalPERS opposed the package, and a prior Delaware court ruling on an earlier award remains under review even after Tesla’s shift of incorporation to Texas.
  • Shares ticked up slightly in after‑hours trading following the vote and later fell about 5% on Friday, while a non‑binding proposal to invest in xAI drew more support than opposition but was left for the board to evaluate.