Musk's $1 trillion Tesla pay package approved by shareholders

Investing.com -- Tesla (NASDAQ: TSLA) shareholders approved CEO Elon Musk’s highly contested pay package - valued at up to $1 trillion over the next decade, if performance targets are met - in a shareholder vote on Thursday. Over 75% of Tesla shares voted in support of the record pay package.

Shares of Tesla gained 0.6% after-hours on Thursday following the news.

The approval represents an endorsement of Musk’s vision to transform the electric vehicle maker into an artificial intelligence and robotics powerhouse.

The outcome was widely anticipated after Tesla relocated its headquarters from Delaware to Texas, allowing Musk to exercise the full voting rights of his approximately 15% stake in the company. In Delaware, a legal challenge had prevented Musk’s previous compensation package from moving forward.

Shareholders approved the package despite opposition from some major investors, including Norway’s sovereign wealth fund.

Prior to the vote, Tesla’s board had indicated that Musk might leave the company if the pay package was not approved.

Wedbush analyst Dan Ives issued positive commentary following the shareholder vote. This, he said, allows the company to keep Musk, whom he called the company’s "biggest asset."

"With this pay package now voted positively keeping Tesla’s biggest asset, Musk, as its leader for the foreseeable future, we continue to believe that the AI valuation is getting unlocked, and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab and Optimus in the US," Ives commented.

The analyst continues to believe Tesla could reach a $2 trillion market cap early 2026 in a bull case scenario and $3 trillion by the end of 2026.

You May Also Be Interested In

• Apple suing OpenAI over alleged misappropriation of trade secrets
• Cognizant shareholder derivative settlement gets preliminary approval
• NSA sets July 22 closing for Public Storage acquisition