CNBC Television
Tesla CEO Elon Musk's pay deal results today: Here's what to expect
11/6/2025, 1:26:58 PM
Economic Summary
- Tesla (TSLA) shareholders are voting on a compensation plan for Elon Musk worth up to $878 billion with multi-stage performance tranches that could raise his stake above 25%, potentially allocating large additional share grants if targets are met.
- Key performance metrics include delivering 20 million vehicles, deploying 1 million robo-taxis, and deploying 1 million humanoid robots; proponents argue meeting these would drive substantial long-term growth for Tesla (TSLA).
- Governance and legal risks: Musk owns roughly 15% and can vote his shares, many retirement/pension funds oppose the deal for weak safeguards, and a prior similar package was ultimately rejected in Delaware court, leaving ongoing legal uncertainty.
- Market reaction context: supporters like ARK Invest and Bearing Capital back the plan as alignment of incentives, while institutional investors worry about accountability and potential dilution or concentration effects on TSLA shareholders.
Bullish
- Supporters say hitting tranches would create massive shareholder value.
- Elon Musk holds voting shares and is likely to vote in favor.
- Key metrics (cars, robo-taxis, robots) seen as feasible by some investors.
Bearish
- Pay package is enormous and could reward Musk even with weak safeguards.
- Retirement and pension funds argue package lacks constraints on political behavior and time spent.
- Previous, similar package was struck down in Delaware court, raising legal risk.
Bullish tickers
TSLAARK INVESTBEARING CAPITAL
Bearish tickers
TSLA
TSLA
Bullish
If Musk meets the aggressive tranches (cars, robo-taxis, robots), the company and shareholders could capture outsized long-term value; supporters believe incentives align founder with growth.
Bearish
Huge potential payout with limited safeguards, pension fund opposition, and prior package struck down in court raise governance and legal concerns for Tesla shareholders.
ARK INVEST
Bullish
Public supporter of the pay package, arguing that achieving targets benefits shareholders.
BEARING CAPITAL
Bullish
Named as a supporter backing the compensation plan as incentive alignment.
People mentioned
Elon MuskPhil LebeauJoeAndrew