Tesla shareholders overwhelmingly approved a performance-based compensation plan for CEO Elon Musk on November 6, 2025, that could award him up to $1 trillion in stock over the next decade if ambitious milestones are met. The vote, held at the company's annual meeting in Austin, Texas, passed with more than 75% support despite opposition from some major investors. The package aims to secure Musk's leadership amid Tesla's push into AI and robotics.
At Tesla's annual shareholder meeting in Austin, Texas, on November 6, 2025, investors voted to approve a new CEO performance award plan for Elon Musk, granting him up to 423 million additional shares potentially worth $1 trillion if the company achieves a series of demanding targets over 10 years. Preliminary results showed over 75% approval, with a later SEC filing confirming 76.6% support. Musk, who currently holds about 13% of Tesla, would see his stake rise to around 25% upon full vesting.
The plan is structured in 12 tranches, each tied to market capitalization increases and operational goals. Key milestones include growing Tesla's market value from its current approximately $1.4 trillion to $8.5 trillion, delivering 20 million vehicles cumulatively, achieving 10 million active Full Self-Driving subscriptions, deploying 1 million Optimus humanoid robots, and operating 1 million robotaxis. Additional requirements involve annual adjusted EBITDA targets starting at $50 billion and rising to $400 billion, with the final tranches also needing a board-approved CEO succession plan by 2035, when Musk will be 64.
Supporters, including Wedbush Securities analyst Dan Ives, hailed the package as essential to retaining Musk, whom Ives called a 'wartime CEO' vital for Tesla's AI ambitions. 'Tesla without Musk is like pizza without cheese,' Ives said. Tesla Chair Robyn Denholm emphasized that the incentives ensure Musk's 'unmatched leadership abilities' focus on the company, amid concerns over his distractions from politics and other ventures like SpaceX and xAI.
Critics, such as New York City Comptroller Brad Lander, decried it as an 'indefensible compensation package' from a 'crony board' loyal to Musk over shareholders. Lander noted the board's discretion in deeming milestones met, potentially diluting shareholder value. Connecticut Treasurer Erick Russell condemned it for governance failures, including board ties to Musk and suppression of shareholder input. Proxy advisors Glass Lewis and Institutional Shareholder Services opposed the plan, arguing it could decrease shareholder value.
Following the vote, Tesla shares fell about 3.6% to around $429.70 on November 7, erasing some recent gains and reducing Musk's net worth by $10 billion to an estimated $481.4 billion. Musk addressed the crowd energetically, calling the meeting a 'banger' and urging shareholders to 'hang onto your Tesla stock.' He described the approval as opening 'a whole new book' for Tesla's future in autonomy and robotics.
The package builds on prior awards, like the 2018 plan Musk exceeded ahead of schedule, but faces skepticism given Tesla's 2025 challenges, including sales slumps in Europe linked to Musk's political activities and competition from Chinese EV makers.
