Tesla, Inc. shareholders have approved an unprecedented compensation plan for Elon Musk, potentially worth up to $1 trillion over the next decade.
The vote took place at the company’s annual meeting in Austin, Texas, with over 75% of shares supporting the package.
The pay plan is tied to ambitious performance targets. Musk will need to drive Tesla to a market valuation of around $8.5 trillion, deliver tens of millions of vehicles, launch one million robotaxis, and sell one million humanoid robots while maintaining strong profitability to unlock the full payout.
Elon Musk reacted to the approval, saying: “What we’re about to embark upon is not merely a new chapter of the future of Tesla but a whole new book.” Some institutional investors, including Norges Bank Investment Management, expressed concerns over the size of the package and potential dilution of shares.
The Tesla board emphasized that the approval was critical to retaining Musk’s leadership. They warned that rejection could risk Musk leaving, which might “cause us to lose significant value.”
Under the agreement, Musk must remain CEO for at least seven and a half years, and several awards will only vest if the company meets its ambitious operational targets.
While critics argue the package is excessively large and concentrates too much power in Musk’s hands, supporters contend his leadership is essential for Tesla’s growth in AI, robotics, and electric vehicle innovation.
