Tesla Shareholders Vote Today on Elon Musk’s $1 Trillion Pay Package

Tesla shareholders are deciding the fate of a controversial $1 trillion compensation package for CEO Elon Musk in a vote that began this afternoon at the company’s headquarters in Austin, Texas.

The proposal centers around performance-based goals that, if met, would award Musk the massive payout. These milestones include increasing Tesla’s market capitalization to $8.5 trillion by 2035, achieving annual vehicle sales of 12 million units, and successfully deploying one million robotaxis and one million humanoid robots. The vote comes at a critical juncture for the electric vehicle maker, as it navigates increasing competition and a changing market landscape.

Proxy advisory firms ISS and Glass Lewis have both recommended that shareholders reject the package, citing concerns about its size and the conditions attached. Musk, however, has strongly criticized the firms, calling them “corporate terrorists” during a recent earnings call. Tesla board chair Robyn Denholm cautioned investors in October that Musk could potentially leave the company if his compensation is not approved. You can learn more about proxy advisory firms and their role on the SEC website.

Despite recent recovery from earlier downturns, Tesla’s sales face headwinds following the expiration of the EV tax credit in the US. The outcome of today’s vote could significantly impact the company’s future direction and Musk’s continued leadership; analysts suggest a rejection could lead to significant leadership changes. For more information on Tesla’s financial performance, see Tesla’s Investor Relations page.

Officials have stated that the results of the shareholder vote are expected to be announced later this evening.