Noah Romsdal Hallundbæk Sørensen
Elon Musk secures a record-breaking Tesla pay package after investors rally behind his bold vision for AI and robotics. The approval marks a major vote of confidence in Musk’s plan to transform Tesla into far more than just a car company.
Shareholders at Tesla’s annual meeting in Austin, Texas, have given a resounding endorsement to Elon Musk’s multibillion-dollar pay package.
The largest in corporate history in a vote that signals confidence in his ambition to transform the electric vehicle company into a global leader in artificial intelligence and robotics.
Now shareholders have found a settlement on a Shareholders at Tesla’s annual meeting in Austin, Texas, have given a resounding endorsement to Elon Musk’s multibillion-dollar pay package.
The largest in corporate history in a vote that signals confidence in his ambition to transform the electric vehicle company into a global leader in artificial intelligence and robotics.
Now shareholders have found a settlement on a pay package
More than three-quarters of investors approved the plan, which could hand Musk stock worth up to $1 trillion over the next decade.
The CEO bounded onto the stage surrounded by dancing robots, declaring that Tesla was about to begin “a whole new book” in its history.
A vision rewarded
The vote was a pivotal moment for Tesla’s future, which now depends heavily on Musk’s promises of self-driving cars, a nationwide robotaxi network, and humanoid robots. Despite concerns about his political rhetoric and its effect on the brand, shareholders overwhelmingly chose to back his leadership.
Tesla’s board had warned that Musk could walk away without the package, a scenario many investors wanted to avoid. Supporters said the goals built into the plan would ensure that both Musk and shareholders benefited from future growth. Critics, however, called it excessive and unnecessary.
Musk’s new compensation replaces an earlier plan that remains tied up in court. Shareholders also voted to reelect three directors and to make all board positions subject to annual elections.
Promises and ambitions
On stage, Musk pledged that Tesla would start producing the “Cybercab” — a two-seater autonomous taxi — in April, and unveil a new Roadster sports car. He added that the company would need “a gigantic chip fab” to produce AI processors and might consider partnering with Intel.
Musk also joked about the spectacle of Tesla’s meetings, saying, “Other shareholder meetings are like snoozefests, but ours are bangers.”
Shareholders further backed Tesla’s plan to invest in Musk’s separate AI venture, xAI, though many abstained. Jessica McDougall of Longacre Square told Reuters that institutional investors might be waiting for “guardrails” to prevent excessive overlap between Musk’s businesses.
Divided investors
Some large funds, including Norway’s sovereign wealth fund, voted against the package. Proxy advisory firms Glass Lewis and Institutional Shareholder Services also urged rejection. Still, Musk’s roughly 15% ownership stake helped secure victory, a margin significant enough to make a challenge unlikely.
Jessica Strine of Jasper Street Partners said that without Musk’s votes, “the majority was small enough to warrant review,” but at Tesla, such a review was “realistically not going to happen.”
Analysts said the outcome reassures markets that Musk will stay focused on Tesla rather than his other ventures like SpaceX or xAI. “If completed, these tranches of awarded shares follow strong improvements in revenue growth for Tesla,” said Brian Mulberry of Zacks Investment Management.
Massive goals ahead
Under the plan, Musk will unlock portions of the stock as Tesla meets a series of milestones. These include delivering 20 million vehicles, deploying 1 million robotaxis, and selling 1 million robots while pushing core profits toward $400 billion.
Each milestone achieved would earn Musk 1% of Tesla’s stock. If all targets are met, his total stake could rise by 12%, valued at around $1 trillion — or about $878 billion once deductions are applied.
The package’s value will fluctuate with Tesla’s share price, and Musk has emphasized he is more interested in the additional voting power than the cash. His ultimate goal, he said, is to lead Tesla into an age where “a robot army” becomes reality.
Sources: Reuters, AP, BBC
This article is made and published by Noah Romsdal Hallundbæk Sørensen, who may have used AI in the preparation
