According to Financial Times News, Elon Musk secured a decisive victory with 75% of Tesla shareholders approving his massive $1 trillion compensation package at Thursday’s annual meeting in Texas. The deal could increase Musk’s stake in Tesla by up to 12%, giving him control of a quarter of the company’s shares if he hits all targets. To unlock the full $1 trillion value, Musk must sextuple Tesla’s valuation to $8.5 trillion, boost earnings 24-fold to $400 billion, and sell millions of robots and autonomous driving subscriptions over the next decade. The victory came after a feverish two-week lobbying campaign by Tesla’s leadership, who warned investors about the company’s bleak future without Musk. Despite opposition from proxy advisers and Norway’s $2.1 trillion oil fund, retail shareholders voted overwhelmingly in favor, with about half of Tesla’s 33% retail ownership participating.
The Musk Victory Lap
Man, the celebration was pure Elon theater. He emerged on stage at the Texas gigafactory to cheers from a handpicked audience, pumping his fists while techno music played. Two Optimus humanoid robots danced alongside him in front of neon blue and purple lights. Musk basically treated the shareholder meeting like a cyberpunk nightclub, telling the crowd “other shareholder meetings are snooze fests, but ours are bangers.” He spent over an hour giving extemporaneous remarks about AI eliminating poverty and his vision for an “army” of Tesla robots performing surgery better than humans. The whole production felt like a carefully orchestrated victory lap designed to reinforce his cult of personality.
Board’s Desperate Campaign
Here’s the thing that really stands out: Tesla’s leadership was absolutely terrified this might not pass. Chair Robyn Denholm, CFO Vaibhav Taneja, and general counsel Brandon Ehrhart spent last week in New York giving interviews and meeting top investors. Denholm literally lost her voice from the lobbying effort, leaving former Chipotle president Jack Hartung to lead some shareholder talks. They only found out Wednesday night they had enough votes to win. The board’s message was brutally simple: “What is Tesla worth without Musk or even a part-time Musk? Much less than it is worth now.” That’s some serious key person risk they’re admitting to.
Who Voted How and Why
The voting breakdown tells a fascinating story. Tesla’s three largest outside shareholders—Vanguard (7.5%), BlackRock (4%), and State Street (3.4%)—must have voted for the package to reach that 75% threshold. But Norway’s oil fund, Tesla’s seventh-largest shareholder with 1.1%, publicly opposed what they called “the total size of the award.” New York state comptroller Thomas DiNapoli nailed it when he said “This is pay for unchecked power, not pay for performance.” Yet most shareholders seemed more concerned with keeping Musk happy after he threatened to quit if the vote failed. Basically, they’re betting everything on Musk’s AI vision despite the governance red flags.
The AI Gambit
So what’s Musk actually promising for that $1 trillion? He’s positioning Tesla as an AI and robotics company, not just a carmaker. He called the Optimus robot an “infinite money glitch” and suggested Tesla could build its own “terra-fab” for chip manufacturing. He even mentioned potential talks with Intel about making Tesla’s new AI5 chip. The whole compensation package is structured around this massive pivot—Musk gets nothing if Tesla doesn’t become an AI powerhouse. But here’s the question: can Tesla actually deliver millions of robotaxis and humanoid robots when it’s facing increased competition and sales challenges? The board clearly thinks only Musk can pull it off, but that’s one hell of a bet they’re making with shareholder money.
