Tesla shareholders approve Elon Musk's $1T pay package

Core Points - Tesla shareholders have approved a compensation package for CEO Elon Musk that could be valued at up to $1 trillion in company shares, with over 75% of participating shareholders voting in favor [1] - The compensation package is structured in 12 tranches based on operational, adjusted profit, and market capitalization goals, requiring Tesla to increase its market capitalization from approximately $1.5 trillion to $8.5 trillion over the next decade [2] - The approval followed an extensive campaign by Tesla's board and executives, including public appeals and television advertisements, which is unusual for the company [3] Company Strategy and Vision - Tesla is at a critical inflection point, as stated by Chairwoman Robyn Denholm, emphasizing the importance of the past year in the company's history [4] - Musk has indicated that the approved package is a means to increase his voting control from around 15% to approximately 25%, which he believes is necessary to maintain control over the company's future direction [6] - The company has promoted its "Master Plan 4" as a visionary document for its future, although it has been criticized for being vague and lacking specifics [7] Historical Context - The new pay package was introduced after a previous plan from 2018, valued at around $56 billion, was rejected by Delaware's Chancery Court due to a lack of transparency in the negotiation process [8] - Earlier in the year, Tesla granted Musk $29 billion in shares to compensate for the loss of the 2018 package, with the understanding that this amount would be voided if Tesla wins its appeal [8]