A major vote by Tesla shareholders has cleared the way for Elon Musk to receive one of the largest corporate pay packages ever proposed. More than 75 percent of votes cast supported the plan during the company’s latest shareholder meeting, giving Musk greater control over the electric vehicle maker at a time marked by uncertainty and falling sales.
The final voting results will be released in a filing with the securities regulator in the coming days. Musk appeared on stage in Austin to loud cheers of “Elon Elon” while standing beside the company’s Optimus robots. He told shareholders that “what we are about to embark upon is not merely a new chapter of the future of Tesla but a whole new book.”
The approved plan would grant Musk over four hundred twenty three million additional shares, increasing his ownership from about fifteen percent to roughly twenty five percent. To unlock the full payout, Musk must meet a set of ambitious targets. These include lifting Tesla’s market value from one point five trillion dollars to eight point five trillion dollars within ten years and deploying one million robotaxis. He must also sell twelve million more cars, ten million full self driving subscriptions and one million humanoid robots.
Ahead of the vote, Tesla warned that rejecting the package could risk losing Musk to his other projects. The company argued that the pay plan is meant to ensure he remains focused on Tesla even as he pursues his interest in building what he calls a robot army.
Some of the largest investors opposed the deal, including Norway’s sovereign wealth fund and several public pension groups in the United States. Major proxy advisory firms also urged shareholders to vote against it.
Musk’s previous pay agreement, valued at more than fifty billion dollars, was struck down by a court in Delaware last year. The judge ruled that the board lacked independence from the chief executive. Tesla has appealed the decision and shareholders also approved a plan to shift the company’s legal home from Delaware to Texas.
The board continues to promote Tesla as a future leader in artificial intelligence and robotics. However, the company’s position has become more uncertain due to slowing sales, shrinking market share and political backlash linked to Musk’s public support for the former president. The expiration of federal electric vehicle tax credits is expected to worsen the sales slump.
Tesla launched its first robotaxi service in Austin earlier this year but the rollout fell short of Musk’s earlier claims. Its only new product since 2020, the Cybertruck, has faced weak consumer demand, while global rivals especially from China continue to challenge Tesla’s dominance.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
