- Tesla approved a 12-tranche, performance-based award for Elon Musk, vesting between 2033 and 2035, linked to Artificial Intelligence and autonomy milestones.
- The plan requires the achievement of ambitious targets, including 20 million vehicle deliveries, 10 million subscriptions to Full Self-Driving (FSD), and large-scale deployment of Optimus robots and robotaxis.
- Elon Musk will only gain control of the shares after meeting specific conditions, with the stock currently held in a revocable trust and voted by proxy.
- Morgan Stanley reiterated its ‘Overweight’ rating on Tesla with a $410 price target, citing advances in AI, robotics, and chip production as key growth drivers.
- Retail investor sentiment for Tesla turned highly positive following the compensation package approval, with expectations of future share price gains.
Tesla officially granted Elon Musk a CEO performance award in 2025, distributing roughly 423.7 million shares split into 12 performance-based tranches. Each tranche requires the company to meet specified performance goals related to artificial intelligence, self-driving technology, and robotics, as detailed in a recent SEC filing. The shares, currently housed in Musk‘s revocable trust and voted by proxy, will only vest between 2033 and 2035 after meeting those criteria.
Tesla‘s board reaffirmed confidence in Elon Musk’s leadership, describing the approved compensation plan as the beginning of a “whole new book” for the company. Chairperson Robyn Denholm expressed gratitude to shareholders, calling their approval a “vote of confidence in our visionary leader.” She described the move as the start of significant opportunities around Tesla‘s Robotaxi and Optimus initiatives, stating these could lead to “the largest value-creation event in Tesla’s history, and quite possibly in the history of humanity.”
The compensation package, which was approved by about 75% of shareholders, ties rewards to stringent milestones. These include 20 million vehicle deliveries, 10 million FSD subscriptions, 1 million Optimus robots, and 1 million robotaxis in commercial service. According to Wedbush, Tesla could reach a $2 trillion market cap by early 2026 if these goals are met.
Following this, Rivian Automotive introduced a similar, long-term performance-based plan for CEO R.J. Scaringe, valued up to $4.6 billion and tied to achieving profit and share-price targets through 2035 as they prepare to launch the R2 SUV next year.
A post-annual meeting report from Morgan Stanley maintained an ‘Overweight’ rating on Tesla and set its base-case and bull-case targets at $410 and $800, respectively. Analyst Adam Jonas pointed to Tesla’s progress in integrating with xAI, expanded chip fabrication plans, and new AI-powered infrastructure. Jonas cited Musk’s claim that FSD version 14.3 could allow drivers to text while driving, noting it as a “steam engine moment” for the industry.
Retail sentiment on Stocktwits shifted to “extremely bullish” with users expressing optimism about Tesla‘s share price potential, especially with success in the Optimus and Robotaxi projects. Tesla’s stock price has risen 10% so far in 2025, reflecting renewed investor confidence.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- BitMine Boosts Ether Holdings 34% Amid ETH Price Dip
- Uniswap Proposes Fee Switch Activation and UNI Token Burn
- Stablecoins, Tokenized Cash to Hit $3.6T by 2030: BNY Report
- Citibank Raises Nvidia Price Target to $220 Ahead of Q3 Earnings
- Greenidge Bitcoin Miner Gets 5-Year NY Environmental Permit Renewal
