Tesla Shareholders Approve New 10-Year Compensation Plan for Musk; FSD in China Expected by Early 2026

Recently, we learned from relevant channels that Tesla's shareholders' meeting approved Elon Musk's 10-year compensation package with a majority vote of 75%. Under this compensation plan, Musk is expected to receive Tesla shares equivalent to a market value of approximately $1 trillion as remuneration in the future. Additionally, Musk anticipates that Tesla's Full Self-Driving (FSD) technology will obtain full approval in the Chinese market in February or March 2026; the Cybercab is scheduled to start mass production in April 2026, with a target production rate of one unit every 5-10 seconds; and the new Roadster is planned to have a product demonstration on April 1, 2026, followed by the initiation of mass production within the subsequent 12-18 months. Moreover, the Optimus humanoid robot Version 3 will begin production next year, and Musk predicts that there will be tens of billions of Optimus robots worldwide in the future.

It is reported that Musk's nearly $1 trillion compensation package consists of 12 tranches of stocks. Currently, Musk holds approximately 13% of Tesla's shares. If all the incentive targets are met, he will receive 423 million new shares, increasing his shareholding ratio to about 25%. Musk will be eligible for the first tranche of stocks if Tesla's market value grows from the current approximately $1.5 trillion to $2 trillion, along with the achievement of operational goals such as selling 11.5 million new vehicles. Each time Musk unlocks a tranche of stocks, he will obtain equity equivalent to approximately 1% of Tesla's current outstanding shares. Once he holds these stocks, Musk will have voting rights associated with them, but he can only sell the shares after 7.5 or 10 years.

Other voting results from Tesla's shareholders' meeting include the following: three directors—Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson—were re-elected. Shareholders voted against the proposal on sustainability and child labor audits. Shareholders also decided to maintain the existing rule, which stipulates that legal action cannot be taken against the management for breach of fiduciary duty unless the shareholder holds more than 3% of the company's equity, which is equivalent to a market value of over approximately $44 billion based on the current stock price.

 

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