Overview
- More than 75% of investors backed the package at Tesla’s annual meeting in Austin, granting Musk the chance to earn stock only if extraordinary targets are met.
- The plan provides up to 423.74 million shares across 12 tranches linked to escalating valuation milestones that top out at roughly $8.5 trillion within a decade.
- Operational hurdles include one million robotaxis in service, delivery of one million AI humanoid robots, aggressive vehicle benchmarks such as 20 million cumulative deliveries, and an EBITDA goal of $400 billion.
- If fully realized, the award could lift Musk’s ownership from roughly the low‑to‑mid teens to about 25%, a level he has said would secure greater influence over Tesla.
- Major institutions and proxy advisers opposed the plan as Musk campaigned hard and warned he could leave, while a recent Texas voting rule change amplified the impact of his stake even as Tesla’s auto sales have weakened.