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Tesla Shareholders Approve Musk’s Performance-Based Pay Plan Worth Up to $1 Trillion

The vote delivers a conditional award that pays nothing unless decade-long performance targets are met.

Overview

  • More than 75% of votes cast backed the plan at Tesla’s Austin annual meeting, clearing a stock grant of up to 423.7 million shares over 10 years.
  • The package vests in 12 equal tranches tied to unprecedented goals, including an $8.5 trillion market value plus targets for profitability, robotaxis, Full Self-Driving subscriptions, vehicle deliveries and humanoid robots.
  • If all milestones are achieved, Musk’s ownership could rise to roughly 25% as the plan requires sustained performance and a minimum 7.5-year service period to vest.
  • Proxy advisers ISS and Glass Lewis and major holders such as Norway’s sovereign wealth fund opposed the plan on size, dilution and key-person risk, as protesters gathered outside the Austin factory.
  • The payout remains uncertain because core products and capabilities such as robotaxis, wide FSD deployment and Optimus robots are still in development, and the vote follows a prior Delaware ruling that struck down Musk’s 2018 award.