Tesla's Pivotal Vote on Musk's $44.9 Billion Compensation Package

Tesla shareholders are set to vote on restoring Elon Musk's USD 44.9 billion pay package. If rejected, Musk might take AI research to another company or leave Tesla. Approval would likely keep him at the company, though uncertainty remains. Musk has already secured $6 billion for AI development at his xAI venture.

Tesla shareholders face a crucial decision on Thursday to determine whether to reinstate CEO Elon Musk's USD 44.9 billion compensation package. The vote follows a Delaware judge's annulment of the all-stock plan in January. If the shareholders oppose the move, Musk has hinted at shifting his focus on artificial intelligence research to another venture or potentially exiting Tesla.

Approval of the package would likely ensure Musk's continued leadership in the company, touted as a global front-runner in electric vehicles and now shifting towards AI and robotics. Though analysts predict reapproval, uncertainties linger as Musk demands a 25% stake in Tesla and threatens to take AI research elsewhere if unmet. His xAI project has already secured $6 billion in funding, intensifying the stakes.

A separate ballot issue considers relocating Tesla's legal base from Delaware to Texas to avoid Delaware court oversight. Top institutional shareholders have mostly stayed silent or undecided, while opponents cite concerns over performance triggers, dilution, and key person risk. Despite opposition from major advisory firms ISS and Glass Lewis, Tesla is engaging in an aggressive campaign for approval before Thursday's vote.

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