Elon Musk‘s pay package vote is getting the most attention on the heels of Tesla Inc‘s (NASDAQ:TSLA) shareholder meeting.
Goldman Sachs analyst Mark Delaney, however, is highlighting other key takeaways that are getting less attention.
- TSLA stock is showing weakness. See the complete data here.
The Tesla Analyst: Delaney reiterated a Neutral rating on Tesla with a price target of $400.
The Analyst Takeaways: The 2025 pay package for Musk received more than 75% of the votes in favor.
Delaney brought up a proposal for Tesla to invest in Musk’s xAI, which received more votes in favor than against. The Tesla board noted there were some abstentions on the ballot and would consider those.
Delaney also explained how Tesla's shareholder meeting included updates and commentary on Optimus, FSD, robotaxis, cybercabs and semiconductors.
"Given that the 2025 CEO incentive award was preliminary approved, we believe investor focus will now shift to the potential for Tesla to achieve these objectives," he said.
The new pay package will award Musk with new shares up to an incremental 12% of the company's share count. This could potentially total around $1 trillion in value. The pay package includes various milestones that must be met while Musk is at Tesla.
The milestones include Tesla hitting various market capitalization milestones from $2 trillion to $8.5 trillion. The milestones also include Tesla's adjusted EBTIDA hitting an annual rate of $50 billion to $400 billion. Outside those metrics, the following are milestones that must be hit for the whole pay package to be achieved:
- 20 million electric vehicle deliveries
- 10 million active FSD subscriptions
- 1 million cumulative robots delivered
- 1 million robotaxis in commercial operation
"We believe investors attribute some of Tesla's historical outperformance to the 2018 award, which also set several ambitious operational targets and milestones."
The shareholder meeting included some timeline updates, with Tesla saying production for the Optimus Gen 3 will begin in 2026 and the hope is for Gen 4 production in 2027 and Gen 5 in 2028.
Musk said the company hopes to make 100 million robots per year, or perhaps even 1 billion.
"We believe Tesla has the potential to have a cost advantage that may reach several thousand dollar per robot given the overlap between Optimus and its auto business," Delaney added.
For Tesla FSD, the company said it has partial approval in China with full approval expected in February or March of 2026.
Tesla also shared updates on Cybercab, Tesla Semi and the Tesla Roadster.
One of the most significant areas of focus for Tesla on Thursday was its semiconductors, including the AI5 chip. Tesla said it may collaborate with Intel in the future, adding to the list of current partners like Samsung and Taiwan Semiconductor.
"The company believes that demand for its chips could be very high, and it discussed potentially building its own chip fab to meet the gap in its future supply needs."
After the shareholder meeting, Delaney remains on the sidelines with a Neutral rating.
"Longer term, we expect Tesla to grow its EPS more meaningfully, driven in part by larger contributions from autonomy and robotics."
TSLA Price Action: Tesla stock is down 4.1% to $427.66 on Friday, trading within a 52-week range of $214.25 to $488.54. Tesla stock is up 12.8% year-to-date in 2025.
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