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Tesla shareholder that has made 11x on its investment votes against Musk pay package

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It’s official: The California Public Employees’ Retirement System will vote against Tesla CEO’s $56 billion pay package on Thursday at the company’s annual shareholder meeting, despite making 11x on its investment.

CalPERS says it owned nearly 9.2 million shares of Tesla stock as of June 7, and will not support Musk’s pay package ratification for several reasons:

  • The value is approximately $46 billion, accounting for the cost to exercise the options, which is larger than the last four years of Tesla’s aggregate net income of $33.8 billion (2020-2023).
  • The award would be highly dilutive to existing shareowners and reduce their ownership proportion.
  • While the award does have a five-year holding period, it is concentrated in a single individual.
  • Compared with other high-performing companies over the same period, the Tesla option award is nearly 140 times the annual pay opportunity for other high-performing CEOs.
  • The payout rewards short-term growth and not sustained profitability. Tesla’s value has fallen by more than half from its peak in 2021.

Its Global Equities Investment Director, Drew Hambly, also said:

“We do not think a payout based on short-term market exuberance is warranted without sustained performance. Additionally, this deal concentrates power in a single shareholder and was negotiated by board members whose independence from Tesla’s CEO is questionable. For these reasons, CalPERS could not support the deal in 2018 and remains opposed today.”

RELATED: 

Florida Pension Board votes for Elon Musk’s 2018 CEO Performance Award

CalPERS has seen an 11x growth on its investment since 2018, but believes Musk’s pay package would be “excessive compared to executives at peer companies” and would impact shareholders. It also said the pay package isn’t tied to Tesla’s long-term profitability, as it has already been earned and does not incentivize Musk to perform better in the future.

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Marcie Frost, CEO of CalPERS, also said:

“This exorbitant compensation package is at odds with CalPERS’ longstanding views on executive pay. The compensation is excessive when compared to executives at peer companies, highly dilutive to shareholders, and isn’t tied to the long-term profitability of Tesla…While we agree that Mr. Musk is entitled to be well compensated for his work, we also believe that a pay package should be commensurate to a company’s performance with reasonable salary caps. These features are absent in the deal as structured.”

Musk said recently that he was disappointed in CalPERS decision to vote against ratifying his pay package.

“CalPERS broke the deal. Shame on them, they have no honor.”

CalPERS is also doing something else, which is related to the decision in the pay package case. It said it filed an objection against the lawyers who represented the shareholder that first challenged Musk’s pay package, as their requested $5.6 billion in fees taken in the form of Tesla stock is “exorbitant and would dilute shareholders’ interest in Tesla.”

The Shareholder Meeting is scheduled for tomorrow.

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I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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 teases TSMC as potential Terafab partner

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SpaceX Terafab rendering
SpaceX Terafab rendering

Elon Musk has acknowledged that early discussions with Taiwan Semiconductor Manufacturing Company (TSMC) could bring the company into his ambitious Terafab semiconductor project, signaling a possible partnership with the world’s leading contract chipmaker.

Musk confirmed that early talks are underway, but as of right now, they are “just discussions.” There is no confirmation of a deal nor dismissal of the possibility of one, leaving open the prospect of one of the largest advanced-chip collaborations under discussion in the U.S.

The report that speculated on potential discussions between Terafab and TSMC comes from Tim Culpan, who outlined a few ways the collaboration could operate. One is TSMC using the project as an “anchor customer” for future facilities in Texas, potentially contributing process expertise, operational know-how, or capacity while Terafab provides capital, long-term purchase commitments, or both.

Tesla and SpaceX jointly developed the Terafab project, with Intel already participating on the tech side. Elon Musk announced the project in March, and it intends to produce more than one terawatt of AI compute capacity annually once fully built.

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Elon Musk’s Terafab project locks up massive new partner

Company statements place the first phase at approximately $16.8 billion in cost, with later filings pointing to a total that could reach well into the tens of billions across multiple stages.

Intel joined the effort in April 2026 and is expected to supply its 14A manufacturing process for the full-scale plant.

Musk has said existing suppliers, including Samsung and TSMC, remain important for near-term needs; Tesla already has production arrangements with Samsung for AI5 and AI6 chips, but that future demand from Optimus robots, Cybercab vehicles, and planned space-based data centers will eventually exceed what the global industry can currently deliver.

Terafab is positioned as the long-term answer to that projected shortfall, and Tesla did something similar during COVID to avoid a chip shortage. This is just a much larger-scale solution.

If the partnership were to materialize, it would add TSMC’s industry-leading strategies to a project that already combines Tesla’s and SpaceX’s capital and offtake with Intel’s process technology. For now, the only public confirmation is Musk’s brief acknowledgement that conversations are occurring.

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Tesla reveals early Robotaxi charging strategy, showing scrappy DNA

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Credit: Tesla

Tesla’s early strategy for charging units operating within its Robotaxi fleet reveals that the company surely has not lost any of that scrappy DNA that took it from an unlikely success story to the most valuable carmaker in the world.

An observer at a Tesla Supercharger in Austin spotted ten total Robotaxi vehicles arrive: one Cybercab and nine Model Y units. A Tesla employee was waiting at the lot and allowed each unit to park itself; every car that arrived had nobody in it.

Tesla wins FCC approval for wireless Cybercab charging system

The Tesla employee would walk around and plug each car in, adjusting the parking if needed:

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It’s a very interesting strategy, but extremely understandable at this early point in the Robotaxi program. It’s only been out for about 15 months, and Cybercab just entered the fleet in early September.

On top of that, Tesla is still working tirelessly on its wireless charging apparatus, and a new patent was just published regarding that product last week.

However, this is just another example of how Tesla still has plenty of that scrappy DNA leftover from the “production hell” days, when CEO Elon Musk slept on the floor of the factory, employees were working crazy hours, Tesla was building Sprung Structures to build cars in, and the company was tiptoeing on the brink of bankruptcy.

For now, Tesla is utilizing a simple system for recharging its ride-hailing vehicles, and that is a Tesla employee doing it manually until another solution presents itself. Sure, it’s not the most high-tech thing, and it certainly is not what people might have expected at this point in time, but it works, and it’s keeping the entire suite running.

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Tesla Robotaxi expands hours, Musk explains why it’s been a challenge

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Credit: Tesla

Tesla is expanding its Robotaxi service hours by pushing the time back by one hour, keeping the ride-hailing service operational until 11 p.m., one hour later than previously.

CEO Elon Musk confirmed the change and offered a specific reason the expansion has been gradual: the system still needs to reliably avoid small pets that are difficult to see after dark, as they commonly blend into the color of the road, especially when they’re grey.

The latest adjustment restores only a fraction of the operating window the service once held. When paid Robotaxi rides began in Austin on June 22, 2025, vehicles ran from 6 a.m. to midnight.

Tesla Robotaxi will be a 24/7 service: here’s when

In September 2025, Tesla lengthened the day to a 2 a.m. close, producing a 20-hour window that stayed in place for most of the following year. By early August of this year, the cutoff had already been pulled back; an August 26 update formalized hours of 6 a.m. to 10 p.m. across Austin and several other markets.

The October move to 11 p.m. therefore leaves the Austin day one hour shorter than the original launch schedule and three hours shorter than the 2025 peak.

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Musk addressed the constraint directly after the announcement. “The main thing we’re trying to solve is making sure that we don’t run over pets when they’re hard to see at night,” he wrote. “Literally trying to avoid grey kittens on grey tarmac in the dark.”

The example points to a low-contrast perception problem in which a small animal can blend into the road surface under limited lighting.

Tesla’s vehicles rely on cameras and neural-network processing rather than lidar; Musk has previously argued that advanced vision software can extract useful information even in low light by analyzing photon counts, but the pet-detection case remains the stated limiter in later hours.

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The modest schedule change arrives alongside faster growth in the purpose-built Cybercab fleet. Texas registration data tracked by observers showed the Austin Cybercab count rising sharply in recent weeks, reaching 169 vehicles after more than 100 were added in a short span.

Tesla has indicated that a broader shift toward 24-hour operation is tied to the upcoming FSD v15 software release expected this month on Robotaxi vehicles. Until that capability is validated for the edge cases Musk described, the company continues to add service time incrementally rather than jumping straight to overnight coverage.

The one-hour extension gives Austin riders a later option for evening trips while the underlying detection work continues.

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