Elon Musk’s $1 Trillion Tesla Pay Plan Wins Shareholder Approval

Musk, already the world’s richest person, could get as much as $1 trillion in stock over the next decade, although required payments would take the value down to $878 billion.

Tesla’s future and valuation were dependent on the vote, which hung in the balance as Musk pursues his vision of making self-driving vehicles, creating a robotaxi network across the U.S., and selling humanoid robots, even though his far-right political rhetoric has hurt the Tesla brand this year.

The board warned he could leave if he didn’t get the pay package. Although some investors said it was incredibly exaggerated and unnecessary, many saw it as a way to retain Musk. They believed the goals set in the package would ensure shareholders were rewarded as well.

According to what Musk told the shareholders, “What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.” 

He then made a string of promises on stage—from, in April, beginning production of the Cybercab, its 2-seater, self-driving robotaxi, to unveiling its next-generation Roadster electric sports car. He also said Tesla would need “a gigantic chip fab” to make AI chips and should consider working with Intel.

Three directors were elected by the Shareholders to Tesla’s board, voted in favour of annual elections for all board members, and approved a replacement pay plan for Musk’s previous package, which is held up in court.

“Other shareholder meetings are like snoozefests, but ours are bangers,” Musk said. “I mean, look at this. This is sick.”Shareholders voted in favour of Tesla investing in Musk’s artificial intelligence startup, xAI, though many abstained.