12:12 PM EST, 11/03/2025 (MT Newswires) -- Tesla (TSLA) is expected to receive "overwhelming" shareholder support for Chief Executive Elon Musk's new pay package and a proposed investment in his artificial intelligence company, xAI, Wedbush Securities said in a Monday note.

The brokerage said the potential $1 trillion compensation plan is likely to gain approval despite opposition from some investors and proxy advisory firm Institutional Shareholder Services, calling it a "loud and clear message" to Musk as a "wartime CEO" during a crucial phase in Tesla's growth.

Tesla's annual shareholder meeting is set for Thursday, with the main focus on Musk's proposed new pay plan. Wedbush said the package raises the bar further, tying rewards to adjusted EBITDA milestones and the rollout of 1 million autonomous robotaxis and 1 million Optimus humanoid robots.

Shareholders will also vote on a proposed strategic investment in Musk's xAI, aimed at advancing Tesla's AI capabilities and positioning it as a leading global AI company within 12 to 18 months.

"Getting Musk's pay package approved will be a big step toward advancing Tesla's future goals, with the autonomous and robotaxi roadmap the first task at hand," according to the note.

Wedbush maintained an outperform rating on Tesla with a $600 price target.

Shares of Tesla were up 2.1% in recent trading.

Price: 466.08, Change: +9.52, Percent Change: +2.09