Tesla's investors have officially sanctioned a $50 billion pay plan for CEO Elon Musk, following the company's annual gathering. The Verge reports that this comes despite past resistance from institutional investors and a Delaware court ruling that annulled a prior $56 billion arrangement.
Legal Headquarters Relocates to Texas
Tesla shareholders voted to move the automaker's legal base from Delaware to Texas. This decision came alongside the re-election of board members James Murdoch and Kimbal Musk. This relocation appears to reflect dissatisfaction with Delaware's legal environment.
During the meeting, Elon Musk provided updates on the company's significant projects. The Cybertruck will remain exclusive to the U.S. market due to its unique design features. Regarding the Full Self-Driving (FSD) software, Musk noted that free trials would persist with each software update and reiterated that FSD safety metrics surpass human capabilities despite facing legal scrutiny.
Insights on Optimus Robot and Future Outlook
Musk discussed advancements with Tesla's humanoid robot, Optimus, which is already active in the Fremont facility. He forecasted that thousands of these robots would operate in Tesla's factories by next year's end, suggesting the Optimus market cap could reach $25 trillion, although he acknowledged the challenges ahead.
Musk also outlined plans to transform Tesla's fleet into a distributed computing network for artificial intelligence, drawing parallels with Amazon Web Services (AWS). He hinted at launching three new vehicles, including a robotaxi and a refreshed Roadster. Musk also shared data showcasing Tesla's progress in sustainability and pollution reduction.
Shareholder Concerns and Market Trends
Investors raised questions about Musk's focus due to his involvement in SpaceX, the Boring Company, X (formerly Twitter), and xAI. Since its peak in late 2021, Tesla's market value has more than halved, influenced by slow car sales, rising competition in the electric vehicle sector, and a pivot towards robotics and autonomous technology.
The package faced legal scrutiny in Delaware, where a chancery judge invalidated it earlier this year, characterizing it as an “unfathomable sum” and citing possible board conflicts of interest. Despite these challenges, shareholders reaffirmed their approval. Proxy advisory firm Glass Lewis had cautioned that the package might grant Musk excessive control over Tesla.
