Tesla Launches a Lottery for 2025 Annual Shareholders' Gathering Attendance
Tesla Announces Major Proposals for 2025 Annual Shareholder Meeting
Tesla has unveiled a series of significant proposals for its upcoming 2025 Annual Shareholder Meeting, scheduled for November 6, 2025. The meeting will be marked by a lottery system to decide who can attend in person, with registration now open.
The headline proposal is the new CEO Performance Award for Elon Musk, a 'pay-for-performance' package directly tied to shareholder value creation. If the proposed milestones are achieved, Musk could earn up to $1 trillion in shares. The special reserve of nearly 208 million shares has been proposed to address the unresolved status of this award.
Tesla is also asking shareholders to approve an Amended & Restated 2019 Equity Incentive Plan. Additionally, shareholders will vote on re-electing board members Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.
In an effort to honor past commitments and attract and retain talent in a competitive market, Tesla has added an additional 60 million shares to the general reserve for future equity awards to employees. The special reserve gives Tesla's board flexibility to address these issues without requiring another shareholder vote.
Governance changes, including efforts to eliminate certain supermajority voting requirements, are also on the ballot. Notably, Tesla has proposed a potential investment in Elon Musk's xAI startup. The decision to invest in xAI could significantly influence Tesla's future direction due to its growing reliance on artificial intelligence.
Investor groups have pressed for greater shareholder rights, such as lowering thresholds for filing legal claims. However, most environmental and social proposals have been excluded from the formal vote due to Tesla's successful petitions to regulators.
As of September 2025, the largest shareholders of Tesla Inc. are Elon Reeve Musk (15.79%), The Vanguard Group, Inc. (7.37%), BlackRock Fund Advisors (4.14%), SSgA Funds Management, Inc. (3.52%), Geode Capital Management LLC (2.01%), Capital Research & Management Co. (1.29%), Norges Bank Investment Management (1.16%), and JPMorgan Investment Management, Inc. (1.00%), with a free float of about 84.08%. These shareholders are expected to exercise the most significant voting power at Tesla's annual general meeting on November 6, 2025, including votes on Proposal Three and Proposal Four.
Eligible shareholders must register for the random drawing by October 10, 2025, at 11:59 p.m. Central Time. Winners will be notified during the week of October 13, 2025. Tesla estimates the company's valuation could soar to $8.5 trillion if the proposal is approved.
The 2025 Annual Shareholder Meeting promises to be a pivotal event for Tesla and its shareholders, with a range of proposals that could shape the company's future direction.
