Key Points
- Tesla shareholders will vote on a historic pay package for CEO Elon Musk worth up to $878 billion.
- The vote is one of several key proposals, including a potential investment in Musk’s AI company, xAI.
- Major investors, like Norway’s sovereign wealth fund, have opposed the package, calling it excessive.
- Tesla’s board has warned that Musk might quit if his pay package is not approved.
Tesla shareholders are set to decide on Thursday whether to approve the richest executive pay package in history for CEO Elon Musk, a deal worth up to $878 billion. But this high-profile vote is just one of several critical proposals on the table that could reshape the future of the electric vehicle giant, from the board’s power to a potential investment in Musk’s AI firm, xAI.
The results of the votes will be announced during the annual general meeting on Thursday afternoon at the company’s factory in Austin, Texas. A “yes” on the pay package would be a strong vote of confidence in Musk’s leadership and his vision to transform Tesla into a leader in AI and robotics. A rejection could lead to significant turmoil.
Musk’s proposed pay package is tied to ambitious profit and operational goals, such as delivering 20 million vehicles over the next 10 years and having one million robotaxis on the road. For him to be paid, Tesla’s stock value must also soar, reaching milestones up to $8.5 trillion.
While the package is widely expected to pass, it has faced opposition from some major investors, including Norway’s sovereign wealth fund, who call it excessive. The Tesla board has warned that Musk could quit if the pay package is not approved.
Beyond the pay package, investors will also consider a proposal for Tesla to invest in Musk’s AI startup, xAI. The board has not endorsed this plan, leaving it to shareholders to decide if a tie-up would benefit Tesla or create conflicts of interest.
Other key votes include a proposal to scrap Tesla’s supermajority voting requirement, which would make it easier to pass proposals with a simple majority. Another proposal calls for Tesla to adopt a formal political neutrality policy, a measure seen as a response to Musk’s outspoken public persona and its potential reputational risks.
