Particle.news
Download on the App Store

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

The approved plan vests only upon extraordinary market‑cap plus product milestones.

Overview

  • Investors voted roughly 75% in favor at Tesla’s annual meeting in Austin, clearing a record compensation package for CEO Elon Musk.
  • The award is split into 12 tranches tied to valuation thresholds from $2 trillion up to $8.5 trillion, alongside stepped profit and product goals over the next decade.
  • Operational targets include 20 million vehicles, 10 million Full Self-Driving subscriptions, 1 million robotaxis in service, and 1 million Optimus humanoid robots.
  • If fully earned, Musk would receive about 423 million shares, lifting his stake from roughly 13% to around 25%.
  • After a Delaware court voided his 2018 deal, Tesla shifted its legal home to Texas and adopted bylaws informed by SB 29 and SB 1057, including a 3% ownership threshold for derivative suits, even as major institutions and proxy advisers opposed the package and analysts note the goals remain highly uncertain.