Tesla (TSLA) shareholders approved CEO Elon Musk’s new pay package, one that could reach $1 trillion in overall compensation. Tesla said Musk’s package passed with over 75% approval.
“I’d like to give a heartfelt thanks to everyone who supported the shareholder votes,” Musk said at the meeting. “I super appreciate it.”
Musk added: “What we’re about to embark upon is not merely a new chapter of the future of Tesla but a whole new book.”
Tesla stock rose after the vote results were announced on Thursday night but fell in early trading on Friday.
“With this pay package now voted positively keeping Tesla’s biggest asset, Musk, as its leader for the foreseeable future, we continue to believe that the AI valuation is getting unlocked, and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun,” Wedbush analyst Dan Ives wrote shortly after the meeting.
This year’s package — revealed in early September — would grant Musk 12 massive tranches of stock options tied to targets the board argues are aggressive.
Prior to approval of the latest plan, Musk held a 13% stake in Tesla after various share sales over the past couple of years, but he hasn’t been “paid” in years, he said. His 2018 pay package is embroiled in a lawsuit in Delaware, where shareholders alleged they didn’t have enough information to properly vet the compensation awarded by the board, and a trial judge agreed. The Delaware Supreme Court is currently weighing the merits of Tesla’s appeal.
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In other news, Tesla shareholders reelected the three directors up for election: Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.
Tesla also said a majority of shareholders approved a proposal to invest in xAI (XAAI.PVT), Elon Musk’s AI startup, but there was a substantial number of “abstain” votes, so the board said it will review the proposal further.
In a presentation following the results announcement, Elon Musk announced that Tesla will build a 1 million-unit Optimus production line at its factory in Fremont, Calif., and eventually a 10 million-unit line at Giga Texas in Austin.
Tesla also revealed that Cybercab robotaxi production would begin in April 2026, and that Miami, Dallas, Phoenix, and Las Vegas would be the next cities to test Tesla’s robotaxi service.
In terms of new products, Musk announced that the new Tesla Roadster will be revealed on April 1, 2026, with production set to begin 12 to 18 months after that.
