Tesla Shareholders Approve $1T Pay Package for Musk

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00:00This is what you need to know about Tesla's annual shareholder meeting and Elon Musk's

00:04$1 trillion pay package. First, shareholders voted overwhelmingly to approve it. More than 75%

00:11of the vote was in favor, confirming the biggest CEO or corporate payout in history. The message

00:17is very clear. Investors want to keep Elon Musk in the driver's seat and they're willing to hand

00:23over more control. This vote clears a path for Elon Musk to take his stake in Tesla to 25% over the

00:31next decade. But the award is in tranches and set against massive goals. These are not symbolic

00:38targets. Elon Musk has to hit very real, mandatory milestones in order to get paid. Those milestones

00:46include delivering 20 million vehicles, hitting 10 million full self-driving subscriptions,

00:51taking adjusted earnings to $400 billion, taking Tesla's market cap to $8.5 trillion. Miss those

01:00and he doesn't get paid. Shareholders also backed a non-binding proposal for Tesla to invest in XAI,

01:08Elon Musk's AI company. More shareholders voted for the proposal than against, but there were a large

01:14number of abstentions. So Tesla and its board are going to look at the proposal, look at the data

01:19data before they make any decision.