Summary โofโข Elon Musk‘s New Tesla Compensation Plan (November 6,โ 2025)
Here’s โa breakdown โฃof the key details ofโฃ Elonโ Musk’s newly approvedโ compensation plan at โTesla:
Approval & Voting:
* โ The plan was approved by 75% of voting shares at Tesla’s annual shareholder meeting on November 6, 2025, in Austin, Texas.
* The โvote โfollowed a period of intense campaigning โฃby Tesla, โขincluding interviews and television advertising.
* โ Despite board support, major advisory firms (Glass Lewis andโ ISS) recommendedโ votingโค against the plan.
* The plan comes after a Delaware court invalidated a previous $56 billion compensation package, which Tesla is appealing.
Compensation Structure:
*โค The planโ awards shares in 12 tranches overโ the next decade, tied to achieving specific milestones.
* โข Musk won’t receiveโ a salary, but could earn โhundreds of billions of dollars worth of stock.
* The โฃplan significantly increases Musk’s โvoting power,โข from approximately 13%โฃ to 25% (adding 423 million shares).
Key Milestones &โ Goals:
* โ Market โคCapitalization: Tesla needs to โreach a market cap of $8.5 trillion โwithin 10 years (currently โaround $1.54 trillion). Installments areโฃ awarded as the market โcap increases in stages ($2T, thenโ $500B incrementsโค to $6.5T, then โฃ$1T increments).
*โข โ operational Goals:
โ * โ Deliver 20 million โฃvehicles (currently โover 8 million).
โ โ * โ Reach 10 million active users of Full Self-Driving (FSD).
โ * Deliver 1 million Optimus robots.
โฃ * Launch commercial operations of 1 million โRobotaxiโค vehicles worldwide.
* Financial Goals:
* โ Adjusted โannual profits โmust start โฃat โ$50 billion โคand increase to $400 billion.
Potential Earnings & Contingencies:
* Musk could receiveโค tens of billions of dollars (potentially over $50โข billion) even if not all goalsโฃ are met.
*โข โ”Covered events” (natural โdisasters,โค wars, legal changes) could allow Musk to acquire sharesโ even without meetingโ operational milestones.
Other Notable Points:
* The plan doesn’t limit Musk’s political activities,โข despite research suggesting they could โฃimpact Tesla sales.
*โฃ โข A separateโค proposal to โฃallow โTesla investment โin Musk’sโ xAI โcompany also received shareholder support โฃ(though with a significant โnumber of abstentions).
* โข Muskโ envisions Optimus robots as having a โคtransformative impact, “more than โa โmobile โฃphone,” and potentially “eliminating poverty” and revolutionizing healthcare.