Tesla CEO Elon Musk will speak at the 2025 Annual Meeting of Shareholders on November 6, 2025.
Provided by: Tesla
tesla Shareholders have voted in favor of Chief Executive Officer Elon Musk’s nearly $1 trillion compensation plan, the company announced, with 75% of voting shares supporting it.
Board members recommended that shareholders approve the pay plan introduced in September. Top proxy advisor Glass Lewis and ISS recommended a no vote.
The results of the vote were announced Thursday at the company’s annual shareholder meeting in Austin, Texas.
A separate proposal submitted by private investor Stephen Hawk seeks to allow Tesla to invest in Musk’s artificial intelligence startup xAI, which was founded in March 2023 to compete with OpenAI. Brandon Ehrhart, Tesla’s general counsel, said at the meeting that while the company “received more yes votes than no votes,” there were many abstentions and Tesla is considering its next steps.
Already the world’s richest person, Musk’s compensation package consists of 12 tranches of stock that will be awarded if Tesla reaches certain milestones over the next 10 years. It will also give Musk greater voting rights in the company, in line with demands he has made publicly since early 2024. Musk’s ownership will increase from about 13% to 25%, increasing his holdings to more than 423 million shares.
The first tranche of shares will be paid out if Tesla’s market capitalization reaches $2 trillion. Tesla’s current market capitalization is $1.54 trillion.
If Tesla’s value increases by $500 billion, up to $6.5 trillion, the next nine tranches will be awarded. If market cap increases by $1 trillion, Musk would get the last two tranches, meaning he would need to reach $8.5 trillion to get the full package.
Tesla also laid out a series of revenue milestones starting with Musk’s annual adjusted profit of $50 billion and up to $400 billion. In the third quarter, Tesla reported adjusted EBITDA of $4.2 billion.
Other goals related to the newly approved pricing plan include achieving 20 million vehicle deliveries, 10 million active FSD (Full Self-Driving) subscriptions, 1 million bots (Optimus humanoid robots) delivered, and 1 million robotaxi commercial operations. Tesla has delivered more than 8 million vehicles to date, according to its September proxy statement.
The proposed plan does not specify whether you need to purchase an FSD subscription or whether it can include a free trial. Tesla currently offers a partially autonomous driving system, which it sells in the United States as “FSD Supervised.” The company intends to improve the FSD Supervised system so that it no longer requires human supervision inside the vehicle.
Musk claimed at the conference that the Optimus robot would “end poverty,” “provide great health care for everyone,” and be “bigger than a cell phone, bigger than anything.” He also said robots could be used to “contain future crimes” by following criminals and stopping them from “criminal activities.”
There are currently no Optimus robots on the market, and Musk did not specify a target date for achieving these goals.
As Reuters previously reported, Musk could collect tens of billions of dollars without meeting most of the goals set by his board, and could collect more than $50 billion just by hitting some of the more achievable goals.
The terms of the award also include a list of “qualifying events” in which Musk can earn shares without achieving required operational milestones.
Covered events include natural disasters, wars, pandemics, and changes in “international, federal, state, or local laws, regulations, or other governmental acts or omissions” that may prevent the design, manufacture, or sale of products in the future.
Shareholders voted for the new plan after the Delaware Court of Chancery ruled last year that Musk’s early 2018 pay plan was improperly approved by Tesla’s board and must be revoked. Musk has appealed the ruling and said the case will be decided by the Delaware Supreme Court.
In addition to leading Tesla, Musk runs xAI, which merged with X, heads SpaceX and its satellite internet business Starlink, and is the founder of brain-computer interface company Neuralink and tunnel venture The Boring Company.
He is also deeply involved in politics, most notably working to return President Donald Trump to the White House and then leading an effort to completely dismantle the federal government at the beginning of his second term.
Last month, the National Bureau of Economic Research published a paper estimating that Tesla’s sales in the U.S. would have increased by 67% to 83% from October 2022 to April of this year had it not been for Musk’s “polarizing and partisan actions.”
The newly approved pay plan does not limit Musk’s political activities and does not set a minimum amount of time he must spend working at Tesla.
WATCH: Tesla shareholders approve Musk’s pay plan
