Tesla CEO Elon Musk achieved a significant victory on Thursday as shareholders approved a $878 billion pay package for the next decade, reinforcing his vision to transform the electric car maker into a leader not only in vehicles but also in artificial intelligence and robotics.
Following the announcement, Tesla shares rose about 2%, with the proposal receiving 75% shareholder approval, according to Reuters.
At an event in Austin, Texas, Musk introduced several dancing robots and stated:
“What we are entering is not just a new chapter for Tesla’s future, but an entirely new book.”
In addition to the pay package, shareholders re-elected three directors to the board and voted in favor of a compensation replacement plan for Musk’s services, following a legal challenge that had delayed a previous package.
Market analysts view the vote as positive for Tesla’s stock, highlighting that the company’s value closely depends on Musk’s vision for self-driving vehicles, nationwide robot taxis, and humanoid robot production. However, Musk’s political rhetoric this year has posed some challenges to the brand’s public perception.
The approval came despite opposition from several major investors, including the Norwegian sovereign wealth fund. Tesla’s board had indicated that Musk could have resigned if the package was not approved, making this victory a crucial moment for the company’s long-term plans.
The approval of Elon Musk’s record pay package signals shareholder confidence in the CEO’s long-term vision and his ability to expand Tesla into innovative fields like artificial intelligence and robotics. This move is likely to enhance stock value and position Tesla strategically ahead of competitors. Yet, public image challenges and Musk’s political statements remain factors that could influence investor perception in the medium term.