Tesla Shareholders Approve Elon Musk's Multi-Billion Dollar Compensation Plan

Tesla shareholders have approved a significant executive compensation package for CEO Elon Musk, potentially valued at nearly $1 trillion (£760 billion). The decision was made at the company's annual general meeting on Thursday.

Package Details and Rationale

The approved compensation plan is contingent upon Musk achieving specific performance targets for the electric vehicle manufacturer over several years. If these milestones are met, Musk stands to receive hundreds of millions of new Tesla shares.

The Tesla board supported the deal, asserting that Musk might depart the company if the package was not approved and that his leadership was crucial for the company's continued success. Approximately 75% of shareholders who cast votes supported the resolution.

Meeting Highlights

The announcement of the approval was met with applause from attendees at the Austin, Texas meeting. Elon Musk addressed the audience, stating, "What we're about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book." He also commented on the lively atmosphere, describing the meeting as "sick."

Performance Targets

Key targets for Musk to achieve under the compensation agreement include:

• Increasing Tesla's market value from $1.4 trillion to $8.5 trillion.
• Bringing one million self-driving "Robotaxi" vehicles into commercial operation.

Musk's Remarks and Analyst Observations

During his remarks, Musk initially focused on the Optimus robot. Analyst Gene Munster, managing partner at Deepwater Asset Management, noted on X that Musk's "new book" vision began with Optimus, with no immediate mention of cars, Full Self-Driving (FSD), or Robotaxi.

Musk later addressed FSD, stating the company was "almost comfortable" allowing drivers to "text and drive essentially." He also described interactions with regulators as akin to a Franz Kafka novel.

Regulatory Context

US regulators are currently investigating Tesla's self-driving features following multiple incidents. These incidents reportedly include vehicles running red lights and driving on the wrong side of the road, some of which have resulted in crashes causing injuries.