Musk's Record Pay Plan Approved At Tesla --- Investors vote in favor of $1 trillion package after CEO threatened to quit

 

Musk’s pay depends on what global market will buy. Whose humanoids are more useful and better - Chinese or Tesla's?  Neither Chinese humanoids nor Tesla's Optimus is definitively "better" yet; they represent different strengths and stages of development. Chinese companies are ahead in the number of commercial orders and mass production capabilities, while Tesla is seen as a leader in applying advanced AI, specifically its "Full Self-Driving" software, to a general-purpose robot.

 

Chinese Humanoids

 

    Commercialization & Price: Chinese firms like Unitree Robotics and Agibot are leading in commercial orders and have made some humanoids, such as the Unitree G1, available to consumers for around $16,000.

    Production: China has a robust robotics supply chain and manufacturing infrastructure, allowing for faster and lower-cost mass production.

    Physical Capabilities: Chinese robots like the Unitree G1 often boast superior speed (12 km/h vs Tesla's 8 km/h), more joint motors for better articulation, and high load capacity, making them suitable for dynamic and demanding environments.

    Current Use: Chinese humanoids are already being integrated into manufacturing processes; for example, Xpeng's 'Iron' robot helps with car assembly in their factories.

 

Tesla's Optimus

 

    AI & Software: Tesla's key advantage is its use of a unified AI model, drawing on the same technology used for its autonomous vehicles, which is expected to give Optimus strong generalization capabilities and adaptability in real-world scenarios.

    Dexterity & Design: Optimus is designed for precise tasks like soldering wires and lifting up to 20 pounds. Its design emphasizes efficiency and endurance for everyday tasks in industrial settings.

    Mass Production Potential: While currently in the prototype stage, Tesla plans to have thousands of Optimus units working in its own factories and expects to move into small-volume production, targeting a price of $20,000-$30,000 when released commercially.

    Future Vision: Tesla's focus is on creating a general-purpose, thinking robot that can eventually perform a wide range of tasks, from industrial work to potential home use.

 

Conclusion

Chinese humanoids are currently more "useful" in the sense that they are available now and being deployed in commercial and industrial settings with a focus on specific, practical applications and lower production costs. Tesla's Optimus is not yet mass-produced but is widely considered to have superior long-term potential due to its advanced AI approach and the company's ability to integrate hardware and software seamlessly. The "better" robot depends entirely on whether one prioritizes current availability and specific mechanical tasks (Chinese humanoids) or future potential for general intelligence and broad task adaptability (Tesla Optimus). In IT, who starts first and accumulates more data (the Chinese) usually takes all the global market. This is a big problem for Mr. Musk. This explains, why he is getting such huge pay.

 

“Tesla shareholders approved a record-setting pay package for Chief Executive Elon Musk, a plan designed to motivate the world's richest man with as much as $1 trillion in additional stock.

 

Flanked by dancing humanoid robots on a stage bathed in pink and blue lights at Tesla's Austin, Texas headquarters, Musk thanked the crowd of shareholders who supported the pay package with more than 75% of the vote.

 

"What we're about to embark upon is not merely a new chapter of the future of Tesla but a whole new book," Musk said. "I guess what I'm saying is hang onto your Tesla stock," he said later.

 

The measure was hotly debated with some large shareholders taking opposing sides. The voting was largely seen as a referendum on Tesla's longtime leader and his vision to shift the electric-vehicle maker's focus to humanoid robots and artificial intelligence.

 

Musk, who is also CEO of SpaceX and xAI, had threatened on social media to leave Tesla if the measure was rejected. He is Tesla's biggest shareholder with a roughly 15% stake.

 

Musk had said he wanted a big enough ownership stake in Tesla to be comfortable that the "robot army" he was developing didn't fall into the wrong hands, but not so large that he couldn't be fired if he went "crazy."

 

On another proposal that would authorize the Tesla board to invest in Musk's artificial-intelligence company, xAI, Tesla General Counsel Brandon Ehrhart said more shares had been voted for the nonbinding proposal than against, but there were many abstentions. He said the board would consider its next steps.

 

Musk had publicly endorsed the idea as he seeks to catch-up in the AI race.

 

The new pay package, which includes 12 chunks of stock, could give Musk control over as much as 25% of Tesla if he hits a series of milestones and expands the company's market capitalization to $8.5 trillion over the next 10 years. Its market cap is now around $1.5 trillion.

 

Tesla's board described the package as pay for performance, designed to encourage Musk to transform the company with new products such as autonomous vehicles, robotaxis and humanoid robots.

 

"Having worked with him now for 11 years, I can say what motivates him is doing things that others can't do or haven't been able to do," Tesla Chair Robyn Denholm said in an interview last week.

 

Tesla struggled to keep Musk's attention earlier this year as he spent time in Washington running the Department of Government Efficiency. Tesla's vehicle sales fell more than 13% in the first half of the year. After Musk left Washington in May, he turned his focus to his startup xAI and the development of its chatbot Grok, The Wall Street Journal reported.

 

The new pay package was opposed by several proxy advisers and institutional investors including California Public Employees' Retirement System, the New York City retirement systems, and Norges Bank Investment Management, which is the sixth largest institutional shareholder with a 1.2% stake.

 

Institutional Shareholder Services, one of the proxy advisers that urged passive funds to vote down the compensation package, said it had concerns about the magnitude and design of the "astronomical" stock award.

 

Charles Schwab, which has a Tesla stake of about 0.6%, said on Tuesday that it would vote in favor of the package.

 

"We firmly believe that supporting this proposal aligns both management and shareholder interests," it said in a statement.

 

Huge stock awards tied to ambitious targets, sometimes called "moonshot" pay packages, are cast by proponents as a high-octane incentive for outstanding performance. Critics said they are often doubly flawed: overly expensive if targets prove easier than predicted -- and counterproductive if the targets become unattainable and executives see little reason to stick around.

 

Musk's new package is divided into 12 tranches. He could reach the first tranche if Tesla's market cap grows to $2 trillion from around $1.5 trillion today, combined with an operational goal such as selling 11.5 million new vehicles, on top of the 8.5 million vehicles on the road.

 

More challenging milestones include selling one million robots to paying customers and maintaining an adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, of $400 billion. Last year, Tesla posted an adjusted Ebitda of $16 billion, down from a peak of $19 billion in 2022. By comparison in their last fiscal years, General Motors reported Ebitda of $18.7 billion and Apple, the most profitable U.S. company, reported nearly $145 billion.

 

For each tranche he unlocks, Musk would receive equity equivalent to about 1% of Tesla's current shares. Once he earns a tranche, he could vote those shares but wouldn't be able to sell them until they vest, in either 7.5 years or 10 years.

 

Musk's 2018 pay package, the most valuable on record before the 2025 package, is tied up in a dispute at the Delaware Supreme Court.

 

Tesla is appealing a lower court decision to rescind the 2018 pay package after a judge ruled in January 2024 that Tesla's directors were beholden to Musk and the approval process for that package was tainted and lacked transparency.” [1]

 

1. Musk's Record Pay Plan Approved At Tesla --- Investors vote in favor of $1 trillion package after CEO threatened to quit. Peterson, Becky.  Wall Street Journal, Eastern edition; New York, N.Y.. 07 Nov 2025: A1.