Tesla shareholders voted on November 6, 2025 to approve a new compensation plan for CEO Elon Musk that could award him up to $1 trillion in shares over the next decade. The plan adds 423 million shares, which would lift Musk’s ownership stake to roughly 25 % if all milestones are met, and could reach as high as 29 % in a decade’s time.
The headline figure of $1 trillion is a potential maximum; the actual payout is likely closer to $878 billion once the current market value of the shares and any repayment provisions are factored in. The package is tied to a series of ambitious milestones: a $8.5 trillion market capitalization, 20 million vehicle deliveries, 10 million full‑self‑driving subscriptions, 1 million robotaxis, and 1 million Optimus humanoid robots.
Musk’s primary motivation for the deal is voting control rather than cash. The board warned that without the package, Musk could step down, and the approval signals investor confidence in his long‑term vision to transform Tesla into an AI and robotics powerhouse. The package also aligns Musk’s interests with shareholders by rewarding only the achievement of extraordinary financial returns.
Financially, Tesla reported third‑quarter 2025 earnings of $4.2 billion, a 9 % decline from the same period a year earlier. Sales have been weaker than expected in key markets, and margin compression has been noted, reflecting pricing pressure and increased investment in new technologies. These headwinds underscore the importance of the new incentive structure to drive future growth.
Market reaction to the vote was mixed. Investors processed the news with cautious optimism, noting that the approval removes uncertainty about Musk’s leadership while also acknowledging the significant dilution and governance changes. Some major investors and proxy advisory firms opposed the package, citing concerns over size and dilution, but the overwhelming shareholder support indicates a willingness to back Musk’s ambitious agenda.
Management commentary highlighted Musk’s gratitude and vision: “I’d like to give a heartfelt thanks to everyone who supported the shareholder vote,” he said, adding that the package would “give me the voting control needed to steer Tesla toward its AI and robotics future.” Board chair Robyn Denholm noted that without the deal, Musk might pursue other ventures, and General Counsel Brandon Ehrhart confirmed the approval with a statement of over 75 % support.
The approval marks a pivotal moment for Tesla, signaling a commitment to ambitious milestones that could reshape the company’s trajectory. While the deal introduces dilution and governance changes, it also provides a powerful incentive for Musk to deliver on the company’s AI and robotics goals, potentially unlocking new growth avenues and reinforcing investor confidence in Tesla’s long‑term strategy.
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