Tesla Stock Rises -- Shareholders Approve Musk's $1 Trillion Pay Package

This article first appeared on GuruFocus.

Tesla (TSLA, EV) shares rose about 2% on Friday pre-market trading after shareholders approved a performance-based compensation plan for CEO Elon Musk, with roughly 75% support at Thursday's vote.

The plan ties payouts to ambitious milestones, including large valuation gains, growth in core EV sales and progress on robotaxi and robotics projects, and could be worth about $1 trillion if all targets clear over the next decade.

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Board members said the vote signals investor confidence in long-term leadership and helps secure Musk's commitment to the company's strategic roadmap. Institutional supporters and some large retail holders backed the plan, while a handful of pension funds and governance groups registered opposition.

Analysts say the vote reduces one source of corporate uncertainty, but they note the package only pays out if Tesla meets steep, measurable goals.

Market participants will watch any regulatory or legal follow-ups and how the company frames milestones on upcoming earnings calls.

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