Elon Musk has secured a decisive victory, with Tesla shareholders voting overwhelmingly to approve his monumental US$1 trillion compensation package. The result, announced at the company's annual meeting on Thursday, solidifies the billionaire's control over the electric vehicle giant and endorses his ambitious vision for an AI-driven future.
A Resounding Mandate for Musk's Vision
The record pay deal received robust support, winning approval from 75 per cent of the votes cast. This marks the second colossal stock award for Musk in as many years. If he achieves all the ambitious performance targets tied to the package, it could increase his stake in Tesla by up to 12 per cent, ultimately granting him control over a quarter of the company's shares.
The approval came after months of intense debate and scrutiny, with some investors raising governance concerns. However, the majority of shareholders ultimately prioritized retaining Musk's leadership. The chief executive had previously suggested he might leave Tesla if the vote failed, a risk many investors were unwilling to take given that the company's market value of US$1.4 trillion largely rests on optimism about his ability to execute its strategic pivot.
Celebration and a Glimpse into Tesla's Future
The announcement was met with celebration at Tesla's Texas gigafactory. Musk took the stage to cheers from an audience of retail shareholders, pumping his fists in the air. The event had a festive atmosphere, with Musk's brother and board member, Kimbal, applauding from the front row in his signature white cowboy hat.
On a stage bathed in neon blue and purple lights and set against a graffiti-style "sustainable abundance" slogan, Musk danced to techno music alongside a pair of boogieing "Optimus" humanoid robots. In over an hour of extemporaneous remarks, he laid out a futuristic vision where artificial intelligence and robotics are central to global prosperity.
"With AI and robotics, you can actually increase the global economy by a factor of 10 or 100. There's not like an obvious limit," Musk told the audience. He described a future filled with self-driving vehicles and an "army" of Tesla robots capable of performing complex tasks like surgery, potentially "eliminating poverty."
What This Means for Tesla and Its Investors
This shareholder vote caps a tumultuous year for Tesla and its hyperactive CEO, who has amassed a US$460 billion fortune leading his empire of companies, including SpaceX and xAI. Some investors had expressed concerns that Musk's focus was being spread too thin, especially after his involvement in U.S. political affairs reportedly hurt Tesla's sales.
However, the overwhelming approval of the pay package signals that shareholders see Musk as indispensable to Tesla's valuation and future growth. The company's worth is heavily predicated on its successful pivot to artificial intelligence and the deployment of millions of self-driving robotaxis.
"What is Tesla worth without Musk or even a part-time Musk? Much less than it is worth now," said Brian Quinn, a professor at Boston College Law School, highlighting the perceived dependency on its leader. With this new mandate, Musk's control of the electric-car maker is now beyond doubt, and his futuristic roadmap has received a powerful vote of confidence.
