Tesla Shareholders Approve $1 Trillion Compensation Plan for Elon Musk

Tesla shareholders have approved a compensation package that could grant CEO Elon Musk up to $1 trillion in stock over the next decade, contingent upon meeting ambitious performance targets. The vote, held during the annual meeting in Austin, Texas, saw over 75% of shareholders in favor of the plan.

The compensation package requires Musk to achieve several significant milestones, including increasing Tesla's market value nearly sixfold, delivering 20 million electric vehicles, and deploying one million humanoid robots over the next ten years.

Despite opposition from major investors such as Norway's sovereign wealth fund and CalPERS, who expressed concerns over the package's size and potential shareholder dilution, the plan was approved. Critics argued that the board of directors was too beholden to Musk, his behavior too reckless lately, and the riches offered too much.

Supporters believe the package will incentivize Musk to focus on Tesla's growth into AI and robotics. Financial analyst Dan Ives of Wedbush Securities stated, "This AI chapter needs one person to lead it and that's Musk. It's a huge win for shareholders."

Following the vote, Musk expressed his appreciation, saying, "Fantastic group of shareholders," and advised, "Hang on to your Tesla stock."

The approval also strengthens Musk's control over Tesla, potentially doubling his stake to nearly 30%. This development comes amid recent challenges for the company, including a 50% drop in sales in Germany last month.

In addition to the compensation package, shareholders approved allowing Tesla to invest in one of Musk's other ventures, xAI, and rejected a proposal to make it easier for shareholders to sue the company by lowering the size of ...