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Tesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy

But there was one driving factor that was considered critical to Tesla: “Receive assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”

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The Tesla Board of Directors announced yesterday that it had established a new pay package for CEO Elon Musk, as it believes it is “critical” to secure his long-term commitment to the position.

However, the Board made it clear about Musk’s political involvement in its proxy filing, which announced the new pay package, and it seems the company is addressing it directly.

Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

The proxy announced the massive pay package, which could give Musk $1 trillion if he achieves various goals that would help Tesla grow as an automaker, energy provider, and in the Robotics and AI sectors.

There are also some details about the Board’s decision, which we went over yesterday, as it felt that Musk was the right person to continue to lead Tesla for the foreseeable future.

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It appears that there were four primary reasons behind the decision to retain Musk with this substantial pay package.

Tesla sought to secure Musk’s commitment to the company by offering him a path to increased ownership; if he were to achieve all tranches, he would hold approximately 27 percent ownership.

Another was to let Musk develop the newest Master Plan, which was released last week. Additionally, there needs to be a “meaningful framework for long-term succession planning led by the Board with Musk’s active participation.”

But there was one driving factor that was considered critical to Tesla: “Receive assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”

It is far from a secret that Musk’s involvement with President Donald Trump during his election campaign and after he was voted in rubbed many people the wrong way.

Musk was part of President Trump’s White House, serving as the Head of the Department of Government Efficiency (DOGE) and also acting as a Special Advisor.

The White House, Public domain, via Wikimedia Commons

 President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

Musk’s political involvement impacted sales, but by how much is unknown.

It appears the Board is truly ready to move on from politics and focus on what matters: expanding AI, Robotics, and sustainable energy. For what it’s worth, Musk has backed away from politics significantly compared to how it was during election season.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Tesla Full Self-Driving gets an offer to be insured for ‘almost free’

“If @elonmusk is game, we’d be happy to explore insuring Tesla FSD miles for (almost) free.”

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Credit: Tesla

Tesla Full Self-Driving just got an insurance offer from Lemonade Co-founder and President Shai Wininger that might be too good to pass up, as he wants to insure vehicles on FSD for “almost free.”

Traditionally, Tesla vehicles are slightly more expensive to insure with traditional companies because of higher repair costs that stem from their technology and state-of-the-art structural battery design.

However, the development of the Full Self-Driving suite by Tesla has certainly pulled some tech entrepreneurs and others to believe the vehicles should be much cheaper to insure.

While there are certainly people on both sides of the spectrum, a handful of notable tech figures believe the data shows that Teslas operating on FSD are safer than human drivers.

Tesla Q2 2025 vehicle safety report proves FSD makes driving almost 10X safer

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One of the tech figures who believes that is Shai Wininger, President and Co-founder of Lemonade, an insurance company that has nearly two million customers.

On X, Wininger recently announced the direct integration with Tesla vehicles that would roll out to Lemonade customers. The integration would “remove the need for a UBI device in our Pay Per Mile product. This makes activating Lemonade Car on Teslas effortless and lets us cut hardware and shipping costs, helping lower prices for Tesla drivers even further.”

He said the Tesla API complemented Lemonade’s platform because it provides “richer and more accurate driving behavior data than traditional UBI devices.”

He then proposed an idea to CEO Elon Musk, stating that Lemonade would “be happy to explore insuring Tesla FSD miles for (almost) free.”

It would provide Tesla drivers with stable and accurate insurance, while also incentivizing owners to utilize the Full Self-Driving suite for their miles, making the semi-autonomous driving platform extremely cost-effective to use.

Wininger said it would be available in states where Tesla’s in-house insurance program is not available. Tesla Insurance is available in twelve states, and is looking to expand in Florida, as we reported earlier this week. However, it has not expanded to a new state in about three years.

The thought of Lemonade being able to insure FSD miles for almost nothing is an extremely attractive offer from Wininger, and could potentially be a new outlet to make Teslas even less expensive to own and operate throughout their lifetime.

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

ISS said the size of the pay package will enable Musk to have access to “extraordinarily high pay opportunities over the next ten years,” and it will have an impact on future packages because it will “reduce the board’s ability to meaningfully adjust future pay levels.”

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Tesla CEO Elon Musk’s $1 trillion pay package, which was proposed by the company last month, has hit its first bit of adversity from proxy advisory firm Institutional Shareholder Services (ISS).

Musk has called the firm “ISIS,” a play on its name relating it to the terrorist organization, in the past.

The pay package aims to lock in Musk to the CEO role at Tesla for the next decade, as it will only be paid in full if he is able to unlock each tranche based on company growth, which will reward shareholders.

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However, the sum is incredibly large and would give Musk the ability to become the first trillionaire in history, based on his holdings. This is precisely why ISS is advising shareholders to vote against the pay plan.

The group said that Musk’s pay package will lock him in, which is the goal of the Board, and it is especially important to do this because of his “track record and vision.”

However, it also said the size of the pay package will enable Musk to have access to “extraordinarily high pay opportunities over the next ten years,” and it will have an impact on future packages because it will “reduce the board’s ability to meaningfully adjust future pay levels.”

The release from ISS called the size of Musk’s pay package “astronomical” and said its design could continue to pay the CEO massive amounts of money for even partially achieving the goals. This could end up in potential dilution for existing investors.

If Musk were to reach all of the tranches, Tesla’s market cap could reach up to $8.5 trillion, which would make it the most valuable company in the world.

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Tesla has made its own attempts to woo shareholders into voting for the pay package, which it feels is crucial not only for retaining Musk but also for continuing to create value for shareholders.

Tesla launched an ad for Elon Musk’s pay package on Paramount+

Musk has also said he would like to have more ownership control of Tesla, so he would not have as much of an issue with who he calls “activist shareholders.”

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SpaceX posts Starship booster feat that’s so nutty, it doesn’t even look real

The Super Heavy booster’s feat was so impressive that the whole maneuver almost looked like it was AI-generated.

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Credit: SpaceX/X

SpaceX has shared a video of a remarkable feat achieved by Starship’s Super Heavy booster during its 11th flight test.

The Super Heavy booster’s feat was so impressive that the whole maneuver, which was captured on video, almost looked like it was AI-generated.

Super Heavy’s picture perfect hover

As could be seen in the video shared by SpaceX, Starship’s Super Heavy booster, which is nearly 400 feet tall, smoothly returned to Earth and hovered above the Gulf of America for a few seconds before it went for its soft water landing. The booster’s picture-perfect maneuver before splashing down all but capped a near-flawless mission for Starship, which is about to enter its V3 era with Flight 12.

The booster’s balance and stability were so perfect that some users on X joked that the whole thing looked AI-generated. Considering the size of Super Heavy, as well as the fact that the booster was returning from space, the hovering display all but showed that SpaceX is dead serious about keeping its dominant lead in the spaceflight sector.

Starship V2’s curtain call

As noted in a Space.com report, Flight Test 11 achieved every major goal SpaceX had set for the mission, including deploying Starlink mass simulators, relighting Raptor engines in space, and executing a stable reentry for both the Starship Upper Stage and the Super Heavy booster. The feat also marked the second time a Super Heavy booster has been reflown, a milestone in SpaceX’s quest to make the entire Starship system fully reusable.

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Starship’s V2 vehicle will now give way to the upgraded Starship V3, which is designed for faster turnaround and higher payload capacity. The Starship program is expected to pursue even more aggressive targets in the coming months as well, with Elon Musk stating on social media platform X that SpaceX will attempt a tower catch for Starship Upper Stage as early as spring 2026.

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