TSL shareholders approved Musk's $1 trillion compensation plan, Ark Wood: he is indeed worth it.

TSL (Tesla Inc.) Shareholders officially approved CEO Elon Musk's compensation plan of up to $1 trillion on 11/6, with over 75% of shareholders in favor of the decision. Following the news, ARK Invest, the firm that has always supported TSL, founder Cathie Wood stated, “Musk is indeed worth it.”

Musk is expected to become the world's first trillionaire.

This compensation plan allows Musk the opportunity to increase his personal holdings to over 25% and become the world's first “trillionaire.” However, to receive this reward, he must achieve several goals:

Push Tesla's market value to 8.5 trillion USD.

Rescue the recent sluggish electric vehicle sales.

Successfully mass-produced the self-driving taxi “Cybercab” and the humanoid robot “Optimus.”

Assuming all targets are met, Musk's stake in TSL will reach approximately $2.4 trillion, five times higher than the current net assets of $460 billion, and even surpassing the total GDP of 7 out of over 190 countries worldwide.

To build the Terafab chip factory, accelerating the advancement of self-driving cars and robots.

Musk stated that in the coming years, the focus will be on three major directions: the robot Optimus, the electric truck Semi, and the self-driving taxi Cybercab. He also mentioned that Tesla may build a chip factory named “Terafab” by itself, stating:

“Even if we add up the best production capacity of suppliers like Samsung and TSMC, it still won't be enough to meet the current demand, so we may have to build a super chip factory ourselves, which will be much larger than the original super factory.”

Institutional voting is divided, but retail investors are almost fully supportive.

Despite the overwhelming support in the voting results, the process was not without controversy:

Norges Bank (: the ninth largest shareholder of TSL, expresses opposition.

Investment advisory firms ISS and Glass Lewis: Both recommend shareholders vote against, citing excessive amounts and dilution of equity.

TSL chairman Robyn Denholm frequently emphasizes in the media:

“This is not just a vote of confidence in Musk, but a crucial vote on whether TSL can continue to innovate.”

Elon Musk himself also personally called for it during the earnings report meeting:

“If I don't get 25% of the shares, I won't feel at ease letting the company build a robot army.”

Ultimately, several large institutions have turned to support, including Schwab Asset Management ) and the Florida Retirement Fund.

Investment xAI proposal, majority of shareholders agree but further discussion is needed.

Tesla also announced a “non-binding proposal” to invest in Musk's AI company xAI.

Although the number of votes in favor exceeds the number of votes against, the excessive number of abstentions has led to an undecided outcome. The company stated that it will further discuss the execution details. Assuming it is ultimately approved, TSL may invest an “appropriate amount and form” as determined by the board, with the investment amount potentially reaching 5 billion dollars.

ARK Cathie Wood: This is what Musk deserves

Cathie Wood, the founder of Ark Invest, who has always openly supported Musk in the media, holds about $978 million in Tesla stock. In her latest interview regarding this news, she stated:

“This is a person who has rewritten the industry with the most vision and execution power on Earth. Musk truly deserves this salary.”

Although the news caused TSLA's stock price to drop by 3.5%. Since the introduction of Trump's tariff policy this year, it has impacted the global economy, and Tesla has also been affected, with the stock price once falling to 214 USD this year. However, benefiting from the AI wave and other influences, the stock price has soared to 474 USD, an increase of about 121%.

This article discusses how Tesla shareholders approved Musk's $1 trillion compensation plan, Ark Wood: he is indeed worth it. Originally appeared in Chain News ABMedia.