Tesla shareholders have voted in favor of CEO Elon Musk’s $1 trillion pay package, with the company announcing this afternoon that the proposal received 75 percent support among voting shares at its annual shareholders meeting in Austin, Texas.
CNBC reports that Tesla shareholders have given their stamp of approval to CEO Elon Musk’s unprecedented pay plan, which could potentially be worth close to $1 trillion. The electric vehicle manufacturer revealed that the proposal garnered the support of 75 percent of the voting shares during the company’s annual shareholders meeting held in Austin, Texas.
The pay package, introduced by the Tesla board in September, consists of 12 tranches of shares that will be granted to Musk upon the company achieving certain milestones over the next decade. If all targets are met, Musk’s ownership in Tesla would increase from approximately 13 percent to 25 percent, adding more than 423 million shares to his current holdings. This move also grants Musk increased voting power over the company, fulfilling demands he had publicly made since early 2024.
To receive the first tranche of stock, Tesla must reach a market capitalization of $2 trillion, a significant jump from its current market cap of $1.54 trillion. The subsequent nine tranches would be awarded if the company’s value increases by increments of $500 billion, up to a maximum of $6.5 trillion. The final two tranches are tied to Tesla’s market cap rising by increments of $1 trillion, requiring the company to hit an impressive $8.5 trillion for Musk to receive the full package.
In addition to the market cap targets, the pay plan includes other ambitious goals such as achieving 20 million vehicle deliveries, securing 10 million active Full Self-Driving (FSD) subscriptions, delivering 1 million bots, and having 1 million robotaxis in commercial operation. As of September, Tesla has delivered more than 8 million vehicles, according to its proxy statement.
The plan also outlines a series of earnings milestones, starting with an annual adjusted profit of $50 billion and increasing to $400 billion. In the third quarter, Tesla reported an adjusted EBITDA of $4.2 billion, demonstrating the significant growth required to meet these targets.
Despite the ambitious nature of the pay plan, some analysts suggest that Musk could still earn tens of billions of dollars without meeting most of the targets set by the board. Reuters reported that Musk could collect more than $50 billion by hitting just a handful of the more attainable goals.
The shareholder vote comes on the heels of a ruling by the Delaware Court of Chancery last year, which determined that Musk’s earlier 2018 pay plan was improperly granted by the Tesla board and must be rescinded. Musk has appealed the ruling, and the matter will be decided by the Delaware State Supreme Court.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
