Tesla Investor Support for Elon Musk’s Pay Plan Falls Below 2018 Level

San Francisco — Tesla shareholders have approved CEO Elon Musk’s new trillion-dollar compensation plan, but support for the record package was lower than in 2018, reflecting growing unease among some investors after a turbulent year for the electric-vehicle maker.

A company filing on Friday showed that, excluding shares owned by Tesla executives and board members, 66.9 percent of votes were cast in favor of the plan. By comparison, the 2018 stock-based pay proposal won 73 percent backing, according to analysis by Andrew Droste, head of corporate governance at Columbia Threadneedle.

Tesla said the measure passed with 75 percent support of total voting shares, including insiders such as Musk, who controls roughly 15 percent of Tesla stock and was eligible to vote.

The narrower margin followed months of weak sales and brand challenges linked to Musk’s political activity and his role in the Trump administration. Tesla’s deliveries dropped earlier this year, and analysts say public controversies have weighed on its image and investor confidence.

Still, Droste said the outcome shows continued faith in Musk’s leadership. “Even at just under 70 percent, the vote represents broad support for Elon among Tesla’s shareholder base,” he wrote, noting that many investors viewed Musk’s retention as essential to Tesla’s future.

The board-backed pay plan, introduced in September, includes 12 tranches of stock awards tied to market-capitalization and operational milestones. The first payout would occur once Tesla’s value reaches $2 trillion, about $500 billion above its current level. Hitting all targets could grant Musk stock worth around $1 trillion over the next decade.

Independent proxy advisors ISS and Glass Lewis had urged shareholders to vote against the proposal, citing its scale and dilution risk. Despite those warnings, investors sided with the board, highlighting Tesla’s long-standing belief that Musk’s leadership remains central to the company’s growth.

Tesla did not respond to requests for comment on Monday.