Elon Musk, CEO of Tesla, speaks during the 2025 Annual Shareholder Meeting connected Nov. 6, 2025.
Courtesy: Tesla
Tesla said shareholders voted successful favour of CEO Elon Musk's astir $1 trillion wage plan, with 75% enactment among voting shares.
Board members recommended shareholders o.k. the wage plan, which they introduced successful September. Top proxy advisors Glass Lewis and ISS recommended voting against it.
Results of the ballot were announced connected Thursday astatine the company's yearly shareholders gathering successful Austin, Texas.
A abstracted proposal, submitted by an idiosyncratic investor, Stephen Hawk, called for Tesla to beryllium capable to put successful xAI, Musk's artificial quality startup that was formed successful March 2023 to vie with OpenAI. Brandon Ehrhart, wide counsel astatine Tesla, said astatine the gathering that the institution had "received much votes successful favour than we did successful against," but that determination were a fig of abstentions and that Tesla is considering adjacent steps.
The wage bundle for Musk, already the world's richest person, consists of 12 tranches of shares to beryllium granted if Tesla hits certain milestones over the adjacent decade. It would besides springiness Musk accrued voting powerfulness implicit the company, acceding to demands that he's made publically since aboriginal 2024. His ownership would summation from astir 13% to 25%, adding much than 423 cardinal shares to his holdings.
The archetypal tranche of banal gets paid retired if Tesla hits a marketplace capitalization of $2 trillion. Tesla's existent marketplace headdress is $1.54 trillion. Awards tied to marketplace headdress gains are paired with operational achievements.
The adjacent 9 tranches would beryllium awarded if Tesla's worth increases by increments of $500 billion, up to $6.5 trillion. Musk would gain the past 2 tranches if the marketplace headdress rises by increments of $1 trillion, meaning it would request to deed $8.5 trillion for Musk to get the afloat package.
Tesla besides laid retired a bid of net milestones for Musk, opening with $50 cardinal successful yearly adjusted nett and moving up to $400 billion. In the 3rd quarter, Tesla reported adjusted EBITDA of $4.2 billion.
Other goals tied to the recently approved wage program see reaching 20 cardinal conveyance deliveries, 10 cardinal progressive FSD (Full Self-Driving) subscriptions, 1 cardinal bots (Optimus humanoid robots) delivered and 1 cardinal robotaxis successful commercialized operation. To date, Tesla has delivered much than 8 cardinal vehicles, according to its September proxy statement.
The projected program doesn't specify whether the FSD subscriptions indispensable beryllium purchased oregon could see escaped trials. Tesla presently provides partially automated driving systems, which it markets arsenic "FSD Supervised" successful the U.S. The institution intends to amended its FSD Supervised systems truthful they don't necessitate quality supervision connected board.
At the meeting, Musk claimed that Optimus robots "will destruct poverty," "give everyone astonishing aesculapian care," and volition beryllium "bigger than compartment phones, bigger than anything." He besides said the robots could beryllium utilized for "containment of aboriginal crime" by pursuing criminals astir and stopping them from "doing crime."
There's presently nary Optimus robot connected the market, and Musk didn't supply a people day for reaching those goals.
As Reuters antecedently reported, Musk could inactive people tens of billions of dollars without gathering astir of the targets laid retired for him by the board, collecting much than $50 cardinal conscionable by hitting a fistful of the much attainable goals.
There are besides a database of "covered events" successful the grant presumption that would let Musk to gain shares without gathering the required operational milestones.
Covered events see earthy disasters, wars, pandemics, and changes to "international, federal, authorities and section law, regulations oregon different governmental enactment oregon inaction," that could hamper the company's quality to design, manufacture oregon merchantability its products down the line.
Shareholders voted connected the caller program aft the Delaware Court of Chancery ruled past twelvemonth that Musk's earlier 2018 wage program was improperly granted by the Tesla committee and indispensable beryllium rescinded. Musk appealed that ruling and the substance volition beryllium decided by the Delaware State Supreme Court.
In summation to starring Tesla, Musk runs xAI which has merged with X, leads SpaceX and its outer net concern Starlink, and is simply a laminitis of encephalon machine interface institution Neuralink and tunneling task The Boring Company.
He's besides been heavy engaged successful politics, astir notably moving to propel President Donald Trump backmost to the White House, and past starring a sweeping effort to slash the national authorities astatine the opening of his 2nd term.
The National Bureau of Economic Research published a paper past period estimating that Tesla income from October 2022 done April of this twelvemonth successful the U.S. would person been 67% to 83% higher without Musk's "polarizing and partisan actions."
The recently approved wage program puts nary limits connected Musk's governmental activity, and does not found a minimum magnitude of clip helium indispensable walk moving astatine Tesla.
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