CNBC Television
Tesla expected to disclose results of vote on Musk pay plan today
11/6/2025, 4:23:45 PM
Economic Summary
- Tesla (TSLA) shareholders are voting on Elon Musk's compensation package tied to ambitious 10-year metrics — an $8.5 trillion market cap, 20 million vehicles, 1M robo-taxis, and 1M humanoid robots — which would increase Musk's influence and potentially boost his stake from ~15% toward 25%.
- Major institutional investors (Vanguard, BlackRock) and proxy advisors (ISS, Glass Lewis) will be decisive in the vote; some pension funds oppose the package as excessive, creating uncertainty despite expectations it may pass.
- Tesla is repositioning strategy toward AI, autonomy, and robotics, viewing EVs as a conduit to those technologies; a ballot item considers an investment in xAI (valuation mentioned around $200 billion), indicating capital allocation beyond vehicles.
- There is skepticism that government-style credits and subsidies that supported EV adoption will extend to humanoid robots, which could materially affect the economics of Tesla's robotics initiatives.
- Historical precedent from the 2018 Musk package — which hit targets and delivered shareholder gains — is influencing investor expectations and arguments in favor of the current plan.
Bullish
- Musk incentives align management with long-term transformative targets for AI, autonomy, and robotics.
- Support from major investors like ARK Invest and Ron Baron.
- 2018 compensation package targets were met and delivered strong shareholder returns.
Bearish
- Pay package deemed excessively large by pension funds and proxy advisors (ISS, Glass Lewis).
- Approval could entrench concentrated control and create governance conflicts.
- Uncertain policy support for humanoid robots may limit expected returns from robotics bets.
Bullish tickers
TSLAXAI
Bearish tickers
TSLAXAI
TSLA
Bullish
If Musk achieves the outlined metrics, shareholders could be rewarded as in 2018; supporters include ARK Invest and Ron Baron, and the package aligns incentives with AI/robotics growth.
Bearish
Proxy advisors ISS and Glass Lewis and some pension funds view Musk's pay package as excessive, raising governance and control concerns.
XAI
Bullish
An investment in xAI could accelerate Tesla's AI and robotics roadmap, supporting long-term autonomous and humanoid initiatives.
Bearish
Potential investment in xAI is risky and valuation has fluctuated (around $200 billion cited); xAI is not clearly a public equity today.
People mentioned
Elon MuskPhil LebeauDavidCarlRon Baron