Tesla(US:TSLA) Bloomberg Technology·2025-11-07 20:34Elon Musk's Compensation and Control - Shareholders approved Elon Musk's compensation package, potentially increasing his stake in Tesla to 25% over ten years [1] - The approval rate was astoundingly high at 75%, exceeding previous compensation package votes [2][3] - A 25% stake is seen as a shield against activist shareholders and ensures alignment with Tesla's mission [7][8] Concerns and Opposition - CalPERS voted against the compensation package due to concerns about key man risk, given Musk's involvement with SpaceX and his existing 16% stake [4] - Concerns exist that Musk's control could hinder course correction efforts by activists [9] - Some institutional funds vote against the company's interests, influenced by index funds and political activism [8] Tesla's Vision and Future - Tesla's mission and long-term vision, including electric vehicles, climate support, and humanoid robots, are central to its value [12] - The company is exploring chip manufacturing, which could be a significant area of growth [13] - The last two tranches of the compensation plan are linked to a more formal succession plan [6] SAIC Proposal and Abstentions - The board's neutral recommendation on the SAIC proposal led to a large number of abstentions from retail shareholders [16][17] - Abstentions were also a consequence of limited voting options in the proxy [18] - The board is staying out of the SAIC situation until there is a clear mission from shareholders due to potential conflicts of interest [19][20]