Tesla shareholders have approved a massive new compensation package for CEO Elon Musk, potentially worth up to $1 trillion, with more than 75% voting in favor at the company’s annual meeting in Austin, Texas.
The package ties Musk’s payout to extremely ambitious goals. To receive the full amount, Tesla must grow its market value from $1.1 trillion to $8.5 trillion—exceeding the current combined market value of Meta, Microsoft, and Alphabet.
Operational targets include delivering 20 million vehicles over 10 years, launching 1 million robotaxis, producing 1 million humanoid robots, and securing 10 million full self-driving subscriptions. Musk must also meet earnings milestones in eight consecutive quarters.
The plan is divided into 12 tranches, each worth 35.3 million shares, and is designed to align Musk’s incentives with the company’s long-term growth and expansion into AI and robotics.
The vote followed intense debate. Some major investors and proxy advisers, including CalPERS, Norges Bank, ISS, and Glass Lewis, opposed the plan as excessively large and risky. Norway’s $2 trillion sovereign wealth fund cited concerns about dilution and key person risk. Others, including Charles Schwab and billionaire investor Ron Baron, supported the plan, arguing it ensures Musk remains motivated and aligned with shareholders.
Musk, Tesla’s largest shareholder at roughly 15%, has long pursued a larger stake in the company. If the full package is delivered, his ownership could rise to 29%, and he would become the world’s first trillionaire. Currently, Musk has a net worth of about $504 billion, according to Forbes.
The package also reflects Musk’s vision for Tesla to expand beyond electric vehicles into AI and robotics, including his xAI startup. Supporters say the plan ensures continuity of leadership, while critics warn of excessive executive power and weak governance oversight.
The outcome marks a historic moment for corporate compensation, signaling strong shareholder support for Musk’s ambitious goals and leadership style.
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