Tesla (NASDAQ: TSLA) shareholders are set to cast a crucial vote on Thursday that could grant CEO Elon Musk an unprecedented compensation package valued at up to $878 billion — the largest executive payday in history. The vote is part of Tesla’s annual general meeting, taking place at its Austin, Texas factory, where several high-impact proposals are on the table that could shape the electric vehicle (EV) leader’s future.

While the outcome of Musk’s pay package has grabbed global headlines, shareholders will also vote on proposals that could influence Tesla’s governance, AI ambitions, and even its political stance.

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🚗 The $878 Billion Question: Musk’s Compensation Vote

The proposed compensation plan would reward Musk only if Tesla reaches aggressive milestones, including:

• Selling 20 million vehicles over 10 years
• Operating 1 million robotaxis
• Growing Tesla’s market capitalization from $2 trillion to as high as $8.5 trillion

While many investors argue the rewards align with performance and could drive massive value creation, others such as Norway’s sovereign wealth fund call the plan “excessive.” Tesla’s board has warned that Musk may exit if the deal isn’t approved — raising the stakes further.

In addition, shareholders will vote on backup measures in case a Delaware court invalidates Musk’s previous compensation structure.

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🤖 Should Tesla Invest in Musk’s AI Startup xAI?

Another hot-button issue is a proposal to have Tesla invest in xAI, Musk’s next-generation artificial intelligence company. Though Musk publicly supports the tie-in, Tesla’s board has not endorsed it, prompting debate over the benefits and potential conflicts of interest.

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🗳️ Corporate Governance: Supermajority Rules in Focus

Tesla will again request shareholders to eliminate its supermajority voting requirement in favor of a simple majority, making future governance changes easier. Previous attempts in 2019, 2021, and 2022 failed to hit the required two-thirds threshold — will 2025 be the year the rule is overturned?

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🏛️ A Push for Political Neutrality

A shareholder proposal calls for Tesla to adopt a strict political neutrality policy to avoid partisan entanglements. The initiative, opposed by Tesla’s board, reflects growing concerns from some investors about the reputational risks of Musk’s outspoken political positions, including his support for former President Donald Trump.