Tesla(US:TSLA) Sou Hu Cai Jing·2025-10-31 11:08Core Points - The upcoming Tesla shareholder meeting on November 6 will determine the fate of Elon Musk's $1 trillion compensation plan, which is crucial for Tesla's long-term strategy in autonomous driving, artificial intelligence, and robotics [1] - The vote will cover three key proposals: Musk's compensation plan, an equity incentive plan, and board elections, with the outcome potentially impacting Tesla's future direction [1][2] - If approved, Musk could receive stock rewards valued at up to $1 trillion, but if rejected, he has indicated he might leave Tesla or resign as CEO [1] Summary by Sections Compensation Plan - Musk's compensation plan is structured as a high-stakes wager rather than traditional salary, with 12 performance milestones tied to stock rewards [4] - Achieving all goals could increase Musk's stake in Tesla from 13% to nearly 25%, significantly enhancing his control over the company [7] - The plan includes ambitious targets such as delivering over 12 million electric vehicles annually and achieving a market cap of $8.5 trillion [4][5] Governance and Shareholder Concerns - Institutional investors and shareholder advisory firms have raised concerns about the $1 trillion compensation plan, arguing it could dilute shareholder equity and reflects governance issues [2] - Critics emphasize the close relationship between Tesla's board and Musk, questioning the independence of the board in approving such a high compensation [2] Financial Performance - Tesla's recent Q3 financial report showed record revenue but lower-than-expected profits, attributed to the introduction of lower-priced models and increased operational costs [5] - This financial performance may influence shareholder support for Musk's compensation plan, as concerns about short-term profitability could arise [5] Strategic Implications - The compensation plan is seen as a way to bind Musk to key technological investments, ensuring Tesla remains competitive in the long-term [6] - The focus has shifted from traditional automotive manufacturing to AI and autonomous driving, with the FSD subscription service viewed as a second growth curve for the company [6] - Tesla's board aims to accelerate technological advancements through high-stakes goals, which are critical for gaining regulatory approval and market acceptance [6] Broader Vision - Musk has articulated a vision for transforming transportation through autonomous driving and robotics, suggesting that these technologies could lead to a world without poverty [8] - He believes Tesla possesses all necessary elements for success in real-world AI, positioning the company as a leader in this field [8]