Particle.news
Download on the App Store

Tesla Shareholders Approve Musk Pay Plan Tied to Trillion-Dollar Targets

The vote conditions any payout on extraordinary AI, robotics plus valuation milestones through 2035, raising the prospect of much greater control for Musk.

Overview

  • Investors backed the multi‑year package with more than 75% support at the Austin annual meeting, making Musk eligible for up to about $878 billion in stock if goals are achieved.
  • The award vests in 12 tranches linked to steep market‑value steps culminating at a $8.5 trillion capitalization by 2035 and to operational goals including one million robotaxis and one million humanoid robots.
  • If fully vested, Musk’s stake would rise to roughly 25% from about 13–15% today, significantly increasing his voting power at Tesla.
  • Passage followed Tesla’s move of its legal seat to Texas, which let Musk vote his roughly 15% holding, while major investors and proxy advisers such as Norway’s sovereign fund, ISS and Glass Lewis opposed the plan.
  • Shareholders also re‑elected three directors and approved a replacement pay plan as an earlier award remains tied up in court, and Tesla shares gained in after‑hours trading.