Overview
- More than 75% of votes at Tesla’s Austin meeting backed a new equity plan that could be worth roughly $1 trillion if long‑term milestones are achieved.
- The award spans 12 tranches covering up to 423.74 million shares, linked to roughly $500 billion market‑cap steps and operational metrics, with the first tranche at a $2 trillion valuation.
- Key conditions include Musk remaining at the helm, Tesla reaching an $8.5 trillion market value, deploying 1 million robotaxis, delivering 1 million humanoid robots, and meeting targets such as 20 million cumulative vehicle deliveries and a $400 billion EBITDA threshold after a $6.5 trillion valuation.
- If targets are met, Musk’s ownership could rise toward about 25%, increasing his influence, after Tesla’s move to Texas enabled him to vote his own shares for the plan.
- Major institutions and proxy advisers including Norway’s sovereign wealth fund, ISS and Glass Lewis opposed the deal, and the earlier Delaware ruling voiding a 2018 pay plan keeps legal scrutiny in play.