Elon Musk has just scored a big win. Tesla Inc. shareholders approved, by a margin of over 75 percent, a colossal compensation plan that could reach $1 Trillion USD over the next decade.
The approval confirms their support for transitioning Tesla from an electric vehicle manufacturer into a global giant in artificial intelligence and robotics.
Big 'Elon Musk'-y ambitions
At the annual shareholders' meeting, held on November 6 in Austin, Texas, Elon Musk took the stage surrounded by dancing robots and declared that “What we are starting is not just a new chapter, but a whole new book for Tesla.” He added in his typical fashion that “Other shareholder meetings are boring. Ours is a real party.”
A strategic approval despite criticism
In addition to the pay plan, shareholders re-elected three board members and approved the implementation of annual elections for all directors.
This vote ends months of legal uncertainty surrounding the Tesla boss's compensation, which was previously blocked by a lawsuit. Even though some large investors, including Norway's sovereign wealth fund, opposed it, Elon Musk was able to exercise all voting rights related to his 15-percent stake. The board of directors had warned that a rejection of the plan could lead to his departure.
Reward conditional on ambitious targets
The compensation plan stipulates that Elon Musk could receive up to $878 billion US in shares over 10 years, provided Tesla achieves a series of ambitious goals:
- • produce 20 million vehicles;
- • deploy 1 million robotaxis;
- • sell 1 million humanoid robots;
- • and generate up to $400 billion USD in operating profits.
For Musk to receive the full amount, Tesla's market capitalization will have to climb from $1.5 trillion to $8.5 trillion USD, an objective that several analysts deem audacious.
A strong signal for the markets
This vote must be seen as a sign of confidence in Elon Musk's leadership, despite his political controversies and his simultaneous management of SpaceX and his artificial intelligence startup, xAI. The plan's approval should reassure markets and support Tesla's stock, which is closely linked to its founder's vision.