Tesla(US:TSLA) 3 6 Ke·2025-11-07 02:32Core Points - Tesla's shareholders approved a new CEO compensation plan for Elon Musk, potentially worth nearly $1 trillion, with over 75% voting in favor [1][3] - The plan includes Musk receiving approximately 423.7 million restricted stock units (RSUs), contingent on meeting specific market and operational milestones over the next ten years [5][7] - The market reacted positively, with Tesla's stock rising over 3% post-announcement, indicating investor confidence in Musk's long-term vision [3][24] Compensation Plan Details - The compensation plan is structured as a ten-year performance-based agreement with 12 phases, requiring both market capitalization and operational targets to be met [4][6] - The market cap target starts at approximately $1.5 trillion and aims for $8.5 trillion, with each phase requiring an increase of $500 billion to $1 trillion [7] - Operational goals include delivering 20 million vehicles, achieving 10 million active Full Self-Driving (FSD) users, commercializing 1 million Robotaxis, delivering 1 million Optimus robots, and reaching an annual adjusted EBITDA of $400 billion [7] Shareholder Meeting Outcomes - In addition to the compensation plan, shareholders re-elected three board members and granted Musk 208 million shares without conditions [8][9] - Proposals for sustainability audits and shareholder accountability were rejected, indicating a concentration of control among a few stakeholders [9][11] - The voting dynamics revealed a split between institutional investors and retail shareholders, with retail investors largely supporting Musk's compensation plan [13][14] Governance Concerns - The meeting raised concerns about governance, particularly regarding the limitations placed on shareholders' ability to hold management accountable [12][24] - Critics, including New York State's Comptroller, highlighted the lack of independent oversight and the potential for increased power concentration within the board [12][24] Market Reaction and Future Implications - Analysts view the approval of the compensation plan as a vote of confidence in Musk, which may enhance market sentiment in the short term [23][24] - The ongoing debate about governance risks remains, particularly regarding the scale of the incentive plan and its implications for board independence [24] - The outcome of the shareholder meeting sets the stage for Tesla's strategic direction over the next decade, with Musk's ability to meet ambitious targets being a critical factor [26][28]