Tesla Shareholders Approve Elon Musk’s Record-Breaking $1 Trillion Pay Package
Tesla shareholders have overwhelmingly approved a record $1 trillion pay package for CEO Elon Musk, reaffirming their confidence in the world’s richest man and his leadership as the company pursues ambitious breakthroughs in artificial intelligence and robotics.
The vote, which took place at Tesla’s annual shareholder meeting in Austin, Texas, secured more than 75 percent approval, according to Tesla officials. Musk, visibly elated, thanked investors for their support, saying, “I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super-appreciate it.” The crowd responded with cheers of “Elon,” signaling strong backing from Tesla’s loyal investor base.
The newly approved pay package aims to incentivize Musk to remain at Tesla for at least seven and a half years, potentially increasing his ownership stake in the company from about 12 percent to more than 25 percent. This structure is designed to align Musk’s continued commitment with Tesla’s long-term innovation goals.
Musk has long argued that maintaining his stake and influence over Tesla is crucial for the company’s trajectory. He has previously hinted that he might step back or leave Tesla if he feels his control over its future diminishes. Tesla Chair Robin Denholm echoed this sentiment, warning that the company’s stock could suffer a major blow if Musk were to depart.
The board’s decision follows a series of legal and shareholder disputes over previous compensation plans, including a 2018 pay deal worth $55.8 billion, which was blocked by a Delaware court. After revisiting the terms, Tesla’s leadership proposed this new, expanded compensation structure—one that dwarfs any executive pay package in corporate history.
Under the agreement, Musk will be eligible for the full payout only if Tesla achieves 12 specific performance milestones, including market capitalization targets that begin at $2 trillion—up from its current valuation of around $1.5 trillion—and operational benchmarks such as the delivery of 20 million Tesla vehicles.
Despite the enthusiastic shareholder approval, critics have called the decision excessive and controversial. Tesla Takedown, an activist group opposing the plan, described it as “the world’s most expensive participation trophy,” citing declining sales, safety concerns, and Musk’s divisive political stances as reasons to reject the proposal.
Meanwhile, analysts such as Dan Ives of Wedbush Securities hailed the vote as a “decisive win” for Musk, asserting that it strengthens Tesla’s leadership during a transformative period in AI and automation. He emphasized that the endorsement signals “greater confidence in the Tesla story moving forward.”
Musk, who now has an estimated net worth exceeding $500 billion, remains one of the most influential figures in global technology. With his latest compensation plan officially approved, Tesla appears poised to double down on its vision of revolutionizing not just the auto industry, but the very foundation of human-machine interaction.
