Tesla shares rose more than 2% after shareholders voted to approve CEO Elon Musk’s performance-based compensation plan valued at up to $1 trillion over ten years. The approval reflects strong investor confidence in Musk’s leadership despite recent volatility in Tesla’s business performance and market outlook.
The pay plan ties Musk’s compensation to long-term milestones, including expanding Tesla’s market capitalization to $8.5 trillion, scaling robotaxi production, and advancing humanoid robotics. The board emphasized that the package is designed to align Musk’s incentives with shareholder value creation.
While the approval lifted sentiment around Tesla stock, some analysts caution that the plan increases reliance on Musk’s leadership and exposes investors to dilution risk if targets are met over time.