Tesla is presenting Musk with a billion-dollar stock offering.
Tesla Shareholders to Decide on Elon Musk's Compensation and AI Investment in November
Tesla shareholders will gather on November 6, 2025, for the annual general meeting, where they will vote on a significant decision concerning Elon Musk's new compensation packages and Tesla's investment in his AI company, xAI.
The proposed compensation package for Musk includes a package of shares that could be worth around a trillion dollars, contingent upon Tesla's market value increasing eightfold over the next decade. If Tesla achieves a market value of $8.5 trillion, Musk's package could be worth as much as two Nvidia companies today, currently the most valuable company on the stock market with a market value over $4 trillion.
The full share package for Musk is contingent upon Tesla reaching its targets, including the delivery of one million AI robots and one million robotaxis as part of the package. Elon Musk has emphasised the future of Tesla lies in autonomous driving and humanoid robots named Optimus, with these robots potentially accounting for 80 percent of Tesla's value according to Musk.
It is important to note that this new compensation package comes after a larger package for Musk from 2018 was scrapped due to a shareholder lawsuit. Tesla's appeal against the lawsuit is still ongoing, and if the 2018 package is reinstated, the new allocation would be void.
Elon Musk's wealth, primarily composed of Tesla shares and his stakes in SpaceX, fluctuates with Tesla's stock price. Tesla is currently heading towards a second year of sales decline, which may impact the value of Musk's shares and the potential worth of the compensation package.
In addition to voting on Musk's compensation, shareholders will also vote on Tesla's investment in Musk's AI company, xAI. Last month, Tesla offered Musk a package of 96 million shares, to be received in two years, as part of this investment.
As Musk remains at the helm of Tesla as a condition of the package, shareholders will be asked to consider not only the potential financial benefits but also the long-term strategic direction of the company under Musk's leadership.
The November shareholder meeting promises to be a significant event in the history of Tesla, with shareholders set to decide on a potential multi-trillion dollar compensation package for Elon Musk and Tesla's investment in his AI company, xAI. The outcome of the meeting could shape the future of Tesla and the automotive industry as a whole.
