Tesla CEO Elon Musk scored a major victory on Thursday, November 6, as shareholders approved a compensation package of up to $878 billion over the next 10 years, supporting his vision to transform the EV maker into an AI and robotics juggernaut.
Tesla stock rose about 1% in after-hours trading. The proposal was approved with over 75% support.
Musk took to the stage in Austin, Texas, with a group of dancing robots. “What we’re embarking on now is not just a new chapter in Tesla’s future, it’s a whole new book,” he said. “This is going to be a really big deal.”
He added: “Other shareholder meetings are like snoozefests, but ours is a big deal. I mean, look at this. This is bad.”
Why isn’t the salary package at $1 trillion?
Approval could be positive for Tesla stock, analysts say
Shareholders also re-elected three directors to Tesla’s board of directors and voted in favor of an alternative pay plan for Mr. Musk’s services, after a previous package was blocked by legal challenges. Shareholders also voted in favor of a proposal requiring the board to hold an annual election of all directors.
Analysts said the vote was positive for Tesla’s stock, saying that even though Musk’s far-right political rhetoric has hurt the Tesla brand this year, the company’s reputation rests on his vision of self-driving cars, rolling out robotaxis nationwide and selling humanoid robots.
Musk’s victory was widely expected after the billionaire was given full voting rights for his roughly 15% stake after the automaker moved from Delaware to Texas. Legal challenges there had previously blocked pay raises.
The approval came despite opposition from some major investors, including Norway’s sovereign wealth fund.
Tesla’s board had said Musk could resign if the pay package was not approved.
The vote may also allay investor concerns that Mr. Musk’s interest is waning not only in politics but also in running other companies, including rocket maker SpaceX and artificial intelligence startup xAI.
The board of directors and many investors who expressed support said the nearly $1 trillion package would benefit shareholders in the long run because Musk needs to ensure Tesla hits a series of milestones in order to receive compensation.
Musk’s goals for the next 10 years include delivering 20 million vehicles, operating 1 million robotaxis, selling 1 million robots, and earning as much as $400 billion in core profits. But for him to receive his reward, Tesla’s stock price would first have to rise from its current $1.5 trillion to $2 trillion, then to $8.5 trillion.
