One trillion dollar sky-high compensation cleared! Musk wins "sell-out agreement" thoroughly binding "Iron Man" Tesla, Inc.

On November 6th, Eastern Time, shareholders of Tesla, Inc. (TSLA.US) officially approved CEO Elon Musk's $1 trillion compensation plan at the annual shareholder meeting, setting a record for the highest compensation for a corporate leader in history. According to the company, over 75% of shareholders voted in favor of the plan, marking the successful conclusion of weeks of lobbying by the board, Musk himself, and prominent individual investors. This compensation agreement paves the way for Musk to become the world's first trillionaire, and it plans to increase his stake in Tesla, Inc. to over 25% in the next decade. In order to receive full compensation, Musk must achieve a series of goals, including significantly increasing Tesla, Inc.'s market value, reversing the soft trend in the automotive business, advancing the development of autonomous taxis, and projects such as Optimus Siasun Robot & Automation. Musk, wearing a black Tesla, Inc. jacket, took the stage at the shareholder meeting and addressed the cheering crowd, saying, "This is not just a new chapter for Tesla, Inc., but a completely new book in human history." This means not continuing the old story, but completely rewriting the narrative of business - Tesla, Inc. evolving from an electric vehicle manufacturer to a comprehensive ecosystem of AISiasun Robot & Automation + energy. He emphasized that Tesla, Inc. is accelerating the increase in vehicle production and expanding Optimus Siasun Robot & Automation capacity at unprecedented speed. The vote on compensation is crucial for the strategic advancement of Tesla, Inc. - Musk had previously hinted that if he could not gain greater control, he might reduce his investment in the company or turn to other businesses. Now, with the deepening of the autonomous driving and artificial intelligence strategy, Musk is expected to continue to lead Tesla, Inc. As of the time of writing, Tesla, Inc.'s stock price rose 1.5% after hours, having risen 3.4% at one point during trading hours. As of Thursday's close, Tesla, Inc.'s stock price has accumulated a 10.42% increase for the year, slightly behind the S&P 500 index's 16% increase. It is worth noting that Tesla, Inc. is currently facing a new controversy over a shareholder proposal. The company stated on Thursday that it needs time to review a non-binding shareholder vote result - the proposal suggests that Tesla, Inc. invest in Musk's artificial intelligence startup, xAI. Although the submitted votes were more in favor than against, the high number of abstentions requires further discussion. This proposal is advisory in nature, requiring the "board to determine the appropriate amount and form" of investment, with no mandatory obligation for Tesla, Inc. to pursue. Musk had previously publicly supported the investment and proposed last year to acquire Tesla, Inc. shares for $5 billion. Behind the sky-high compensation is a high-stakes gamble: Wall Street warnings vs. individual investor support, Musk wins a crucial battle Despite public opposition from institutional investors such as Nordea Asset Management, the approval of the plan was still expected. Norway's Sovereign Wealth Fund stated its appreciation for "the tremendous value created by Mr. Musk's visionary leadership," but voted against Musk's compensation plan, believing that the plan could dilute shareholder value and did not alleviate the "key person risk" that Tesla, Inc. is betting on in the future. In addition, proxy advisor firms ISS and Glass Lewis had recommended a vote against, believing the plan's scale was too large and could dilute other shareholders' interests. Some executive compensation experts and other major shareholders warned that the compensation plan posed a significant risk to investors. Experts pointed out that the compensation plan goes against governance principles, not only because of its large scale, but also because the board is so clearly pledging Tesla, Inc.'s future to a leader with many conflicts of interest and the potential to consolidate unchecked power. Charles Elson, Founding Director of the Weinberg Corporate Governance Center at the University of Delaware, stated that the Tesla, Inc. board was being "threatened" by a "superstar CEO." Krishna Palepu, a professor at Harvard Business School focusing on corporate governance, believed that the compensation plan ties Musk's compensation to a significant increase in stock price and requires him to hold the received shares for five years, aligning with shareholder interests. "The numbers are big because the goals are big." The Tesla, Inc. board actively lobbied for this compensation plan, with Tesla, Inc. board chair Robin Denholm repeatedly emphasizing the criticality of the vote for Tesla, Inc.'s future in media interviews. The day before the shareholder meeting, Denholm warned of the risk of losing Musk when promoting the compensation plan this Wednesday, cautioning that losing Musk could lead to Tesla, Inc. losing "significant value," as the company's valuation largely depends on its future promises in autonomous driving cars and humanoid Siasun Robot & Automation. Last week, Morgan Stanley warned that if Musk's compensation plan was voted down at the shareholder meeting, Tesla, Inc.'s stock price could immediately suffer a drop of over 10%. If the plan was not approved, it could be seen by the market as a vote of no confidence in Musk's leadership, potentially creating uncertainty in the company's strategic outlook and exacerbating the risk of key talent losses. Previously, Musk had publicly threatened that if shareholders voted down his compensation plan again, he would leave Tesla, Inc. Reports indicated he had warned Tesla, Inc. board members that he may shift his focus to other companies under his umbrella, including SpaceX, xAI, and Neuralink. Musk himself emphasized the need to hold a quarter of the company's shares to advance the "Siasun Robot & Automation army" plan. Earlier this week, Janus Capital Management announced its support for the plan, while some individual investors threatened to divest from brokerage firms that opposed the plan through social media. Institutional investors including the Florida State Board of Administration also explicitly voted in favor. Wade Bush Securities analyst Dan Ives pointed out that while the new plan faced profitability challenges, Tesla, Inc. is embarking on the most crucial chapter of the era of autonomous driving. Epic wealth transformation: If Musk reaches Tesla, Inc.'s $8.5 trillion market value target, his net worth will surpass the GDP of most countries in the world If Musk achieves all goals, including increasing Tesla, Inc.'s market value to $8.5 trillion, the value of his stake in the company will reach about $2.4 trillion. According to the billionaire index, Musk's current net worth is approximately $460 billion. This potential wealth will surpass the GDP of all countries in the world except seven, making him the first trillionaire in human history. The approval of this compensation plan illuminates a clear path for Musk on his challenging journey. Musk's wealth has been through ups and downs this year. At the beginning of the year, when Musk attended the inauguration ceremony with President Trump, his fortune was about $450 billion. However, his wealth quickly shrank due to Musk's political stance in his role in the Department of Efficiency in the government, leading to some potential buyers of Tesla, Inc. feeling alienated. In particular, the dispute between Musk and Trump directly caused Tesla, Inc.'s stock price to plummet, setting a record for the second largest single-day decline in the billionaire index's history. It is worth noting that Musk's wealth has since shown signs of recovery, mainly due to the resurgence of Tesla, Inc.'s stock price and significant growth in the valuations of privately held companies such as xAI and SpaceX. However, this new compensation plan has faced strong opposition from long-term critics - New York State Comptroller Thomas DiNapoli publicly stated on Thursday that this move is "payment for unchecked power, not for performance"; Vermont Senator Bernie Sanders even bluntly stated that the plan is "completely absurd." Sanders emphasized to the media, "While ordinary people face the pressures of rent, healthcare, groceries, and a decent retirement, we are discussing how to further inflate the wealth of someone whose fortune already exceeds the total sum of the bottom 52% of American households." Looking back, Musk's multi-billion dollar compensation plan proposed last year was rejected by a Delaware state judge, and Tesla, Inc. appealed the decision and moved its registration to Texas in response. In August of this year, the Tesla, Inc. board paid Musk a temporary bonus of $30 billion in an attempt to partially compensate for previous losses.