A Tesla analyst says there is “zero chance” that CEO Elon Musk’s new compensation package is rejected, a testament to the loyalty and belief many shareholders and investors have in the frontman.

Tesla investors will vote on November 6 at the annual Shareholder Meeting to approve a new compensation package for Musk, revealed by the company’s Board of Directors earlier this month.

The package, if approved, would give Musk the opportunity to earn $1 trillion in stock, an ownership concentration of over 27 percent (a major request of Musk’s), and a solidified future at the company.

The Tesla Community on X, the social media platform Musk bought in 2023, is overwhelmingly in favor of the pay package, though a handful of skeptics remain.

Nevertheless, the big pulls of this vote are held by proxy firms and other large-scale investors. Two of them, Institutional Shareholder Services (ISS) and Glass Lewis, said they would be voting against Musk’s proposed compensation plan.

Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm

Today, the State Board of Administration of Florida (SBA) said it would vote in favor of Musk’s newly-proposed pay day, making it the first large-scale shareholder to announce it would support the CEO’s pay.

One analyst said that Musk’s payday is inevitable. Gary Black of the Future Fund said today there is a “near-zero chance” that shareholders will allow Musk’s pay package to be rejected:

“There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”

He added an alternative perspective from Wedbush’s Dan Ives, who said that he had a better chance of starting for the New York Yankees than the comp package not being approved.

There is a near zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting. As Wedbush analyst Dan Ives (@divestech) colorfully put it in a Yahoo Finance interview on October 23rd: “I have a better chance of starting for…

— Gary Black (@garyblack00) October 27, 2025

Black’s the Future Fund sold its Tesla holdings earlier this year. He explained that the firm believed the company’s valuation was too disconnected from fundamentals, citing the P/E ratio of 188x and declining earnings estimates.

The firm maintained its $310 price target, and shares were trading at $356.90 that day.

Shares closed at $452.42 today.

The latest predictions from betting platform Kalshi have shown Musk’s comp package has a 94 percent chance of being approved:

https://t.co/uZ67o1Ft1y

— Kalshi (@Kalshi) October 20, 2025

Tesla gained a massive vote of confidence on its proposed $1 trillion compensation plan for CEO Elon Musk from the State Board of Administration of Florida (SBA) on Monday.

On Monday, the SBA submitted a filing to the Securities and Exchange Commission (SEC) stating that it would vote to support Musk’s compensation plan, just as it did with the 2018 performance award and its second vote last year:

“The SBA supported Tesla’s 2018 performance award proposal and reaffirmed that support in the 2024 Tesla shareowner vote. The total return on Tesla’s stock after enactment of its 2018 performance award and the prior history of incentive structured plans leads us to strongly support the proposed 2025 CEO performance award. We believe the proposed award continues to promote an aggressive strategy to align incentives between management and shareowners and focuses solely on pecuniary factors and long-term shareowner value creation.”

This is the first large-scale shareholder that has come out and supported Musk’s potential compensation plan, which was outlined by Tesla and its Board of Directors earlier this month.

Most of the news surrounding Musk’s pay plan has been the opposite of what the SBA said today, as Institutional Shareholder Services (ISS) and Glass Lewis, two proxy firms, said they would be voting against the compensation package.

Tesla Board Chair defends Elon Musk’s pay plan, slams proxy advisors

Musk replied to their vote last week during the Q3 Earnings Call, calling them “corporate terrorists.”

He said:

“I just don’t feel comfortable building a robot army here and then being ousted because of some asinine recommendations from ISS and Glass Lewis, who have no freaking clue. I mean, those guys are corporate terrorists. The problem, yeah. Let me explain, like, the core problem here is that so many of the index funds, passive funds, vote along the lines of whatever Glass Lewis and ISS recommend. They’ve made many terrible recommendations in the past. If those recommendations had been followed, they would have been extremely destructive to the future of the company.”

SBA’s perspective on the plan relies on what Musk has done in the past decade with Tesla, as he has driven company growth, increased shareholder value, and kept the company on track with its lofty and ambitious goals.

It also outlined nine reasons to support Musk’s compensation:

1. Pure Pay for Performance Design – Entirely Performance-Based, aligns with Shareowners
2. Size of the Award and Share Count – Performance-based allocation, dilution tied to value creation, structured milestone design
3. Market Capitalization Milestones – Clear, tiered targets, sustained performance requirement, shareholder value focus
4. Operational/Product Milestones – Clear, quantifiable goals, strategic product focus, financial discipline, multi-quarter evaluation windows
5. Vesting/Holding Periods – Long-term vesting structure, mandatory holding period, continuous service requirement
6. CEO Succession – Succession planning requirement, performance integrity safeguard
7. Time Horizon and Duration – Extended performance window of 10 years, no intermediate vesting
8. Dilution & Voting Power Implications – Potential for significant ownership increase, permanent dilution
9. Ambition and Stretch Goals – Extraordinary Scale of Growth, Shareowner value focus

Shareholders will vote on Musk’s compensation package on November 6 at the annual Shareholder Meeting.

The City of Memphis has collected all taxes owed by Elon Musk’s xAI before the payment deadline, creating a $3.2 million special revenue fund to support communities affected by the company’s operations. 

City officials confirmed that the funds will be reinvested in local neighborhoods near xAI’s Colossus supercomputer.

Directing xAI funds toward community projects

Mayor Paul Young’s administration recently outlined how the funds will be allocated. The initiative was focused on improving infrastructure and quality of life in neighborhoods impacted by xAI’s construction and operations. 

Councilwoman Yolanda Cooper-Sutton emphasized that the process will include public input, with surveys already distributed to residents to guide spending priorities, according to ABC24.

“With that ordinance, we are in the near future getting ready to set up the committee because this is the people’s money,” Cooper-Sutton said. “We wanna make sure that it is used for the people.”

Officials noted that they are planning to present a final proposal to the entire council after reviewing community feedback. Cooper-Sutton added that the program represents a step toward ensuring businesses operating in Memphis treat residents “fairly and with equality.”

“It is truly, truly a blessing. What we are doing here at this body and this council, we wanna make sure that whatever business that comes here, that the people are treated fairly and with equality,” she stated. 

xAI partnership fuels local job opportunities

Beyond tax revenue, xAI’s growing presence is expected to bolster Memphis’ workforce development goals. Earlier this month, the artificial intelligence startup co-hosted a job fair at Crosstown Concourse with the American Job Center to connect residents with new employment pathways.

“We know that jobs are coming. We know that talent is here,” Melody Freemon, executive director of the Greater Memphis Workforce Development Board, stated. “We wanna make sure we’re not just putting people in any ole jobs. We wanna put people on a pathway to self-sustainability. We wanna put people on a pathway to self-sustainability and something they can rely on in the future.”

Freemon also noted that the Greater Memphis Workforce Development Board was able to make a favorable offer to xAI. “We promised that we can provide a pipeline. This is the central hub for connection. This is where job seekers are, so let us take the headache off of your hiring needs. Come here, let us source the people and make sure that we meet the demand,” Freeman stated.