Elon Musk gives updates on Tesla’s Optimus, self-driving after his payday is OKed by investors

Some five months after a Delaware judge struck down Tesla CEO Elon Musk’s $46 billion compensation package, investors put it back on the table.

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Tesla’s annual meeting of shareholders began at 3:30 p.m. CT — in Texas, where the company is headquartered — or 4:30 p.m. ET on Thursday. The meeting opened up Tesla to a number of operational changes and served as a referendum on Musk, who has served as CEO since 2008 and both delighted and turned off investors and customers in equal measure.

Tesla investors reapproved Musk’s 2018 pay package, which allows him to purchase 304 million shares at a little more than $23 a pop. Although it’s unclear exactly what percentage of voters approved the plan, a graph shared by Musk Wednesday night implied around 70% approval.

Read more: Tesla shareholders want Elon Musk to get his billions. What comes next?

Institutional investors were somewhat split on Musk’s compensation, with major shareholders Norges Bank Investment Management and CalPERS taking public stances against Musk’s priorities, while Ron Baron and Scottish Mortgage Investment Trust pledged their votes in his favor. Other major shareholders did not publicly state where they stand ahead of Thursday’s meeting, including Vanguard, State Street, and BlackRock.

However, a vote in favor of Musk’s compensation is more symbolic than legally binding and is expected to largely be used as a selling point in Tesla’s potential appeal of the Delaware judge’s ruling. Although, that will have to wait until after legal fees in the January case are resolved.

“Hot damn, I love you guys,” Musk said Thursday after taking the stage at the shareholder meeting to a barrage of applause from the crowd.

During his presentation to investors, Musk provided some details for his vision of an eventual self-driving fleet of Teslas, pitching the idea as a “combination of Airbnb and Uber,” since owners can opt their cars into the service at their leisure. He also reiterated his pitch to Tesla owners that they can make money on the self-driving fleet while sleeping, as the company would call cars to pick up customers of its potential ride-hail service through an app.

“I’m highly confident that it will far exceed the value” of the monthly payments customers may have to pay for their cars, Musk added.

Tesla will take part of the revenue earned from the potential service — which analysts say is likely years away — while the rest will go to owners. He pointed to a recent report by ARK Invest, which sees robotaxis pushing Tesla stock to $2,600 per share in 2029.

Musk also promoted the potential value Tesla’s Optimus robots may have on the stock, describing a hypothetical that could see the product add $20 trillion to the company’s market capitalization. The robots aren’t expected to go on sale until the end of 2025 and are expected to eventually sell for between $20,000 and $30,000.

“We’ll move into limited production next year of Optimus production for use in our factories,” Musk said. “My prediction is next year we’ll have over 1,000 Optimus robots working at Tesla.”

Musk also announced that the Tesla Semi electric truck has been approved for volume production, well ahead of schedule. The truck has, so far, only been purchased for use by PepsiCo — and more recently — Costco and Walmart.

Besides a vote on Musk’s compensation, investors made their voices heard on 11 other ballot measures. That includes a move to reincorporate in Texas, as well as the reinstatement of two members to Tesla’s board of directors.

Tesla stock jumped almost 3% during regular trading hours Thursday. The stock gained almost 1% in after-market trading during the meeting.

Tesla Proposal 1

The first measure on Tesla’s ballot is the re-election of Kimbal Musk, Elon Musk’s brother, and James Murdoch, a longtime friend and the former head of 21st Century Fox.

Both Musk and Murdoch were re-elected to their posts, according to preliminary results announced by Tesla Thursday. They will both serve for a term of three years and until they — each — have a successor.

Tesla Proposal 2

Tesla’s second measure is the approval of executive compensation for the company’s executives, including Senior Vice President of Automotive Tom Zhu and CFO Vaibhav Taneja.

The measure was approved by a majority of voters, according to preliminary results.

Tesla Proposal 3

Number three on the ballot is Tesla’s potential reincorporation in Texas, which Musk first publicly proposed in January. Another of his companies, SpaceX, made the move in February.

The measure was approved by a majority of voters, according to preliminary results announced by Tesla Thursday.

Tesla Proposal 4

The fourth proposal put forward by Tesla is Musk’s compensation which, by the executive’s own admission, is likely to be officially approved by shareholders. The measure was approved by a majority of voters, according to preliminary results announced by Tesla Thursday. It’s unclear exactly what percentage of voters approved Musk’s plan.

Tesla Proposal 5

The company’s final proposal is the appointment of PricewaterhouseCoopers as Tesla’s public accounting firm for the fiscal year ending December 31. The measure was approved by a majority of voters, according to preliminary results.

Shareholder Proposal 1

The first proposal from shareholders was submitted by James McRitchie, who owns more than 100 common shares. The proposal would require each member of the Tesla’s board to face re-election after one year in that position.

Investors on Thursday voted in favor of the proposal, against the board’s recommendation.

Shareholder Proposal 2

Tesla shareholder John Cheveddon, who owns more than 100 common shares, put forward a proposal that would require a simple majority for all votes. Similar proposals have been made at past meetings, but none have passed. Investors on Thursday voted in favor of the proposal, against the board’s recommendation.

Shareholder Proposal 3

New York City Comptroller Brad Lander, who represents several municipal funds that together own 3.4 million Tesla shares, is behind a proposal that seeks to require annual reporting on anti-harassment and discrimination efforts at Tesla. The company has been repeatedly accused by ex-employees of fostering a culture that allows for discrimination, harassment, and sexual harassment at its facilities.