Tesla Chief Executive Elon Musk delivered a series of ambitious projections for the electric vehicle manufacturer following shareholder approval of his $1 trillion compensation package, outlining plans that span from advanced robotics to interplanetary exploration.
During Tesla’s annual meeting Thursday, Musk described a vision in which the company’s humanoid robot, Optimus, would evolve from performing basic functions to conducting surgical procedures with precision exceeding human capability. He also set targets for the company’s automotive division, projecting a roughly 50 percent increase in production by late 2026 after two consecutive years of declining sales.
The entrepreneur suggested Tesla’s robotics and vehicle technologies could eventually support lunar and Martian colonization efforts, telling shareholders the company might develop specialized vehicles for extraterrestrial environments.
The compensation plan received approval from more than 75 percent of votes cast at Tesla’s Austin factory, according to General Counsel Brandon Ehrhart. The announcement drew a standing ovation from attendees. The package, which could elevate Musk’s ownership stake to 25 percent or more over the next decade, positions the world’s wealthiest individual to potentially become the first trillionaire.
Musk characterized the shareholder decision as transformative for the company. He emphasized plans to substantially expand vehicle manufacturing and accelerate Optimus production at an unprecedented rate.
The vote carried significant weight after Musk indicated he might reduce his involvement with Tesla without greater control over the company. Tesla shares declined as much as 4.8 percent Friday morning in New York trading amid broader market weakness. Through Thursday, the stock had gained 10 percent this year, underperforming the S&P 500 Index’s 14 percent advance.
The Tesla chief executive, who has led the company since 2008, acknowledged supply chain constraints could limit production of sophisticated products. He raised the possibility of Tesla constructing its own semiconductor manufacturing facility to supplement chips from suppliers including Samsung Electronics and Taiwan Semiconductor Manufacturing Company.
Musk said the company expects to begin production of three products next year: the Optimus robot, the delayed Semi truck, and the autonomous Cybercab vehicle. He projected Cybercab output would align with regulatory approval timelines, crediting competitor Waymo for advancing the regulatory framework.
The compensation package faced opposition from notable investors, including Norway’s Norges Bank Investment Management, Tesla’s ninth-largest shareholder. Proxy advisory firms Institutional Shareholder Services and Glass Lewis recommended rejection, citing concerns about the plan’s scale and potential shareholder dilution.
Tesla’s board mounted an extensive campaign to secure support, conducting meetings with major institutional investors and coordinating media outreach. Board Chair Robyn Denholm framed the vote as essential to Tesla’s future in interviews with Bloomberg News, arguing the company requires Musk’s full engagement to achieve its objectives.
Musk has stated he would be uncomfortable developing what he termed a “robot army” without owning approximately one quarter of the company.
If Musk achieves all benchmarks outlined in the compensation plan, including expanding Tesla’s market value to $8.5 trillion, his total stake would be valued at approximately $2.4 trillion. This would exceed five times his current net worth of roughly $460 billion, according to the Bloomberg Billionaires Index, and surpass the gross domestic product of all but seven countries.
Wedbush Securities analyst Dan Ives noted significant challenges remain in unlocking the compensation, including profitable scaling of operations and delivery of robotics and autonomous vehicle products. He described the period ahead as potentially the most critical in Tesla’s history.
Musk’s net worth has fluctuated considerably this year. After standing at approximately $450 billion in January, when he attended President Donald Trump’s inauguration, his wealth declined as his political activities, including involvement with the Department of Government Efficiency, reportedly alienated consumers. A subsequent conflict between Musk and Trump contributed to a sharp drop in Tesla shares.
His wealth has since recovered, supported by Tesla’s stock rebound and increasing valuations of his privately held ventures, including artificial intelligence company xAI and aerospace manufacturer SpaceX.
Critics of the compensation package included New York State Comptroller Thomas DiNapoli, who characterized it as rewarding unchecked authority rather than performance. Vermont Senator Bernie Sanders called the plan “totally absurd,” contrasting Musk’s wealth accumulation with Americans struggling to afford basic necessities and retirement security.
A Delaware judge invalidated Musk’s previous multibillion-dollar compensation arrangement last year. Tesla is appealing that decision and has relocated its corporate incorporation to Texas, partly in response to the ruling. In August, Tesla’s board granted Musk an interim award valued at approximately $30 billion to partially replace the voided payment.
Shareholders delivered a mixed verdict on a separate proposal authorizing Tesla to invest in xAI, Musk’s artificial intelligence venture. While the measure received more votes in favor than against, General Counsel Ehrhart noted “a significant number” of abstentions. The advisory proposal, which was nonbinding, did not specify an investment amount, leaving the board to determine next steps based on shareholder feedback.
Musk has publicly supported the investment concept, suggesting last year that Tesla could contribute $5 billion to xAI.
