Tesla says shareholders approve Musk's $1 trillion pay plan with over 75% voting in favor

Core Viewpoint - Tesla shareholders approved CEO Elon Musk's nearly $1 trillion pay plan with 75% support despite recommendations from top proxy advisors to vote against it [1][2] Group 1: Pay Plan Details - The pay package consists of 12 tranches of shares contingent on Tesla achieving specific milestones over the next decade, potentially increasing Musk's stake from 13% to about 25% [2] - The first tranche is tied to Tesla reaching a market capitalization of $2 trillion, with the current market cap at $1.54 trillion; subsequent tranches are linked to increments of $500 billion up to $6.5 trillion, and the final two tranches require a market cap of $8.5 trillion [3] - Additional goals include delivering 20 million vehicles, achieving 10 million active Full Self-Driving (FSD) subscriptions, and deploying 1 million robotaxis [4] Group 2: Earnings and Operational Milestones - The plan outlines earnings milestones starting from $50 billion in annual adjusted profit, increasing to $400 billion; Tesla reported an adjusted EBITDA of $4.2 billion in Q3 [6] - Musk could potentially earn tens of billions without meeting all targets, as he could collect over $50 billion by achieving a few more attainable goals [6] Group 3: Conditions and Legal Context - The pay plan includes "covered events" that allow Musk to earn shares without meeting operational milestones, such as natural disasters and changes in laws that could affect Tesla's operations [7] - The vote followed a Delaware Court ruling that Musk's previous pay plan was improperly granted, with the matter currently under appeal [8]