Tesla shareholders back Musk’s $1 trillion pay
Tesla shareholders approved Elon Musk’s up-to-$1 trillion pay plan, returned three directors to the board, and backed permitting a potential investment in his AI startup xAI at the company’s annual meeting in Austin, Texas.
The pay proposal cleared with more than 75% support. The package could grant Musk up to 12% of Tesla stock over the next decade if the company hits a set of operational and valuation milestones.
The award is divided into twelve ~1% tranches that confer voting rights upon achievement, while economic vesting is deferred; market-cap hurdles range from about $2 trillion up to roughly $8.5 trillion, compared with roughly $1.5 trillion today.
The award is divided into twelve ~1% tranches that confer voting rights upon achievement, while economic vesting is deferred; market-cap hurdles range from about $2 trillion up to roughly $8.5 trillion, compared with roughly $1.5 trillion today.
Some large investors, including Norway’s sovereign wealth fund, and proxy advisers Glass Lewis and ISS opposed the pay package as excessive. Others supported it as a retention tool tied to demanding goals.
Shareholders also approved annual elections for all directors, reelected three board members, and passed a contingency plan to replace Musk’s prior award if a court invalidates it. Investors also supported allowing Tesla to invest in xAI, though many abstained. Jessica McDougall of Longacre Square viewed the xAI authorization cautiously:
“Many investors will be looking for the board to provide assurances and convictions that there are guardrails in place to be sure there’s not too much mixing of businesses.”
On stage, Musk outlined product and technology timelines. He projected that Tesla will begin building the two-seat steering-less Cybercab robotaxi in April 2026 and plans to unveil the next-generation Roadster.
He added that Tesla likely needs “a gigantic chip fab” capable of at least 100,000 wafer starts per month to support its AI systems, and floated the prospect of discussions with Intel while maintaining partnerships with TSMC and Samsung.
Musk told shareholders the AI5 chip is slated for limited output in 2026 with volume in 2027, and AI6 targets mid-2028, with goals for lower power use and cost than Nvidia’s Blackwell line.
We previously reported that OpenAI CEO Sam Altman has been trying to secure a $50,000 refund for a Tesla Roadster preorder he placed in 2018, citing years-long delays by the automaker.
He added that Tesla likely needs “a gigantic chip fab” capable of at least 100,000 wafer starts per month to support its AI systems, and floated the prospect of discussions with Intel while maintaining partnerships with TSMC and Samsung.
Musk told shareholders the AI5 chip is slated for limited output in 2026 with volume in 2027, and AI6 targets mid-2028, with goals for lower power use and cost than Nvidia’s Blackwell line.
We previously reported that OpenAI CEO Sam Altman has been trying to secure a $50,000 refund for a Tesla Roadster preorder he placed in 2018, citing years-long delays by the automaker.
