SAN FRANCISCO, 7 November 2025 — Shareholders of Tesla Inc. (NASDAQ: TSLA) have approved the largest corporate pay package in history for CEO Elon Musk, cementing investor confidence in his ambition to turn the electric-vehicle maker into a global AI and robotics powerhouse.
The proposal passed with more than 75% support at Tesla’s annual general meeting in Austin, Texas, where Musk appeared on stage flanked by dancing robots. The decision gives the billionaire access to as much as US$1 trillion in stock over the next decade, though required offsets would trim the net value to about US$878 billion.
“What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” Musk told cheering shareholders, outlining his next-generation product roadmap.
Investor Endorsement Amid Brand Strains
The vote provides a crucial boost for Tesla’s long-term strategy after months of speculation over Musk’s focus and political controversies that have weighed on the brand.
The board had warned that Musk might exit the company if the plan were rejected. While some major funds, including Norway’s sovereign wealth fund, and proxy advisors Glass Lewis and ISS, opposed the plan on cost grounds, most investors backed it as a retention tool tied to aggressive performance milestones.
Musk’s compensation depends on Tesla achieving both operational and valuation targets, from delivering 20 million vehicles and 1 million robotaxis, to reaching a market capitalization of US$8.5 trillion, up from roughly US$1.5 trillion today. Each milestone unlocks 1% of additional stock, potentially giving Musk a 12% ownership increase if all goals are met.
“If completed, these tranches of awarded shares follow strong improvements in revenue growth for Tesla,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management. “Whether the growth offsets dilution concerns or simply gives Elon the influence to shape the future of AI, remains to be seen.”
AI, Robotics, and the Next Phase of Growth
Musk used the meeting to reinforce Tesla’s pivot from electric-vehicle manufacturing toward artificial intelligence and robotics, promising to begin production of the Cybercab robotaxi and unveil the next-generation Roadster in 2026.
He also revealed plans for a “gigantic chip fabrication facility” to produce AI processors, suggesting Intel Corp. (NASDAQ: INTC) could become a strategic partner.
Shareholders additionally approved a measure allowing Tesla to invest in Musk’s AI startup xAI, though many abstentions reflected ongoing calls for clearer board-level oversight.
“Many investors will be looking for the board to provide assurances that there are guardrails to prevent too much overlap between Musk’s ventures,” said Jessica McDougall, partner at governance advisory firm Longacre Square.
Governance and Market Reaction
Investors also reelected three directors, endorsed annual elections for all board members, and backed a replacement pay plan for Musk’s 2018 package that remains under court review.
Despite the landmark approval, analysts note that excluding Musk’s own 15% voting stake, the margin was narrow enough to merit further scrutiny at most listed firms. “At Tesla, realistically there is not going to be such a review,” observed Jessica Strine, CEO of shareholder advisory firm Jasper Street Partners.
The decision helped allay market concerns that Musk might shift focus entirely to SpaceX or xAI, with the TSLA stock holding steady in pre-market trading following the announcement.
