Tesla’s board of directors announce 2025 shareholder meeting proposals

Friday, September 5, 2025

Today, chairman of the board of directors of Tesla Incorporated, Robyn Denholm, wrote a letter to shareholders in conjunction with the release of the company’s 2025 proxy statement. In it, Denholm proposed a resumption of the 2019 equity incentive plan for employees as well as the creation of the 2025 CEO performance award for CEO Elon Musk built on the framework of the 2018 CEO performance award, a move which the Delaware Court of Chancery deemed a breech of fiduciary duties and rescinded.

“[Elon Musk] must create nearly $7.5 trillion in value for shareholders for him to receive the full award,” Denholm wrote, which would bring the total market capitalization of Tesla to US$8.5 trillion over the next 10 years. Tesla (NASDAQ: TSLA) is presently valued at approximately US$1.1 trillion. In addition to market capitalization, Tesla must also raise operating profit to US$400 billion, deliver 20 million Tesla vehicles, have 10 million active full self-driving subscriptions, one million Optimus robots delivered, and one million robotaxis in commercial operation. If successful, the compensation would amount to a 12% stake in the company, putting it’s potential value at approximately US$1.02 trillion in stock options which must be held for 5 years following the grant, no salary or cash bonus has been proposed.

Other proposals include the election of board members, approval for investment in Musk’s xAI, a request for a child labor audit, as well as an adoption of a political neutrality policy. Shareholders will vote on all proposals at the annual shareholder meeting at the Gigafactory Texas at 3:00PM CT on November 6, 2025.