Tesla Shareholders Greenlight $878 Billion Pay Package for Elon Musk
Austin, Texas – In a landmark decision, Tesla shareholders overwhelmingly approved a compensation package potentially worth up to $878 billion for CEO Elon Musk on Thursday, securing his leadership as the electric vehicle maker pivots towards artificial intelligence and robotics. The proposal received over 75% of votes in favor, reversing a previous legal challenge that had blocked a similar arrangement.
The approval marks a significant victory for musk, whose future with the company was cast into doubt following a Delaware court ruling last year that invalidated his 2018 compensation plan. Tesla later relocated its incorporation to Texas, allowing Musk to exercise full voting rights over his roughly 15% stake.
“We are about to embark not just on a new chapter in TeslaS future, but on an entirely new book,” Musk declared to shareholders in Austin, accompanied by dancing robots. “This is really going to be quite a story.” He also quipped, “Other shareholder meetings are boring, but ours are amazing.look at this. It’s awesome.”
The approved plan ties Musk’s compensation to ambitious company milestones over the next decade, including delivering 20 million vehicles, deploying one million robotic taxis, and selling one million humanoid robots, alongside achieving a net profit of $400 billion. Crucially, the value of Tesla’s shares must also increase, rising from 1.5 billion to two billion, and ultimately to 8.5 billion, for Musk to fully realise the package.
Tesla’s board had indicated Musk might resign if the package failed to pass.The vote is expected to reassure investors concerned about Musk’s divided attention between tesla and his other ventures, including SpaceX and xAI, an artificial intelligence startup.
Despite the strong support, the proposal faced opposition from some large investors, such as Norway’s sovereign wealth fund. Analysts believe the decision is ultimately positive for Tesla shares, as the company’s valuation is heavily reliant on Musk’s vision for autonomous vehicles and expansion into robotics, even as his controversial political rhetoric has presented brand challenges this year.
