Tesla's Approval That Pleases Investors!

Tesla (NASDAQ:TSLA) shares rose by about 3% on Friday after investors approved a performance-based compensation plan for CEO Elon Musk. The plan received approximately 75% support in a vote held on Thursday.

The approved plan links payments to ambitious targets such as significant value increases, growth in electric vehicle sales, and progress in robotaxi and robotics projects. If all targets are met over the next decade, it is said to be worth a total of approximately $1 trillion.

Board members stated that the vote reinforced investors' confidence in long-term leadership and secured Musk's commitment to the company's strategic roadmap. While corporate supporters and some large individual investors backed the plan, several pension funds and governance groups opposed it.

Analysts emphasize that the vote contributes to reducing corporate uncertainties, but they highlight that payments will only be made if Tesla achieves its high and measurable targets. Market participants will closely monitor any regulatory or legal developments and how the company frames its targets in upcoming earnings meetings.