Tesla's AI5 Chip Design Review with Elon Musk.

Tesla CEO Elon Musk had a design review with the AI5 chip design team today. The company designs, builds, and sells electric vehicles, with net sales primarily from automotive vehicle sales (74.2%), services (10.8%), energy generation and storage systems (10.3%), automotive credits (2.8%), and automotive leasing (1.9%). Manufacturing sites are located in the US, China, and Germany, with a geographic distribution of 48.9% in the US, 21.4% in China, and 29.7% in other regions.

Tesla shareholders are set to vote on two pivotal issues at the upcoming annual meeting on November 6, 2025. The first is a proposal to invest in Elon Musk’s artificial intelligence startup, xAI, while the second is a contentious 10-year compensation plan for Musk that could be worth up to $1 trillion.

The proposal to invest in xAI, put forward by Florida shareholder Stephen Hawk, seeks to accelerate Tesla’s transition into an AI, robotics, and energy powerhouse. The vote comes at a critical juncture for Tesla, which is trying to reassure Wall Street after a stretch of weakening EV sales and a stumbling rollout of its long-promised robotaxi program. Musk has increasingly emphasized AI as the company’s true growth engine, with ambitions centered on Full Self-Driving (FSD) technology and Optimus, its humanoid robot.

The Tesla board has taken a neutral stance on the xAI proposal, a rare departure from its usual practice of advising against shareholder-led proposals. If approved, Tesla would become the second of Musk’s companies to back xAI financially. SpaceX, his aerospace firm, has already pledged $2 billion as part of a broader $5 billion equity raise [1].

The second item on the ballot is a Tesla-backed, 10-year compensation plan for Musk that could be worth up to $1 trillion. The package, designed to give Musk more than 25% ownership of the company, would tie his payout to extreme growth targets, including lifting Tesla’s market capitalization from about $1 trillion today to more than $8 trillion. Musk will not get any salary or cash bonus; instead, he will earn stock if Tesla meets certain goals in market value and business performance [2].

The shareholder meeting is scheduled for November 6 at 3 p.m. Central Time at Tesla’s Gigafactory Texas, with a livestream planned. The votes on xAI and Musk’s $1 trillion package will test how much faith investors still have in Musk’s vision and how far they are willing to go to keep him focused on Tesla’s future.

References:
[1] https://www.tekedia.com/tesla-shareholders-to-vote-on-investing-in-musks-xai-as-company-seeks-to-anchor-its-ai-future/
[2] https://www.republicworld.com/business/elon-musk-1-trillion-pay-package-no-salary-cash-or-bonus-here-s-how-tesla-ceo-will-get-largest-corporate-pay