Tesla shareholders approved Elon Musk’s $1 trillion pay package

Tesla shareholders voted on Thursday to approve Elon Musk’s amazing new pay packagein a move aimed at retaining the controversial CEO’s leadership during a period of great turmoil that the automaker is going through. More than 75% of the shares voted in favor of the proposal.

The vote gives Musk enormous influence over his electric car company and the largest corporate payouts in history. The final number is expected to be revealed in a Securities and Exchange Commission filing within a few days.

The proposed pay package, which was Which the Council put forward last SeptemberIt will grant Musk more than 423 million additional shares, increasing his stake to about 25 percent from its current level of 15 percent. In order to receive full compensation, Musk will need to achieve a series of milestones, including raising Tesla’s market value from the current $1.5 trillion to $8.5 trillion in 10 years. Musk must also operate 1 million robotaxis and sell an additional 12 million cars, 10 million full self-driving subscriptions, and 1 million humanoid robots.

The vote was opposed by some of Tesla’s largest shareholders, including Norges Bank Investment Management, which manages Norway’s sovereign wealth fund, as well as some smaller public pension funds, such as the American Federation of Teachers and various New York City pension systems. Major proxy consulting firms Institutional Shareholder Services and Glass Lewis also opposed the pay proposal.

Musk’s current compensation package, valued at more than $50 billion, was invalidated by a Delaware court last year after a judge found that Tesla’s board lacked sufficient independence from the billionaire CEO. Shareholders voted twice for approval The huge compensation, but the judge upheld her ruling to prevent this. Tesla has He appealed the decision To the Supreme Court of Delaware. This ruling prompted Musk to design a proposal to move Tesla’s legal headquarters from Delaware to Texas, which shareholders also approved.

The new award comes as the board continues to spread the message that Tesla is on the cusp of becoming a leader in artificial intelligence and robotics, which requires Musk’s steady hand at the helm. In fact, Tesla’s position is shakier than ever. Musk’s support for President Donald Trump and his work at the Department of Government Efficiency to fire tens of thousands of federal employees and cancel humanitarian aid programs sparked a nationwide protest movement and Sharp decline in sales. The expiration of the federal EV tax credit is expected to further decline sales.

Musk’s ability to achieve these bold goals set forth in the pay package appears increasingly at odds with his approach to technology. Tesla launched its first robotaxi service in Austin, Texas, earlier this year — although the service… It did not live up to Musk’s previous expectations. All cars still have safety screens, either in the driver’s seat or the passenger’s seat, although Musk said it was possible that they would. Remove them by the end of the year. The company’s only new product since 2020, the Cybertruck, has been widely considered Consumer flop. Competition from other automakers, especially those in China, has reduced Tesla’s market share and exhausted its resources.