By Samuel Okechukwu
AUSTIN, TX—Tesla shareholders delivered a massive vote of confidence to CEO Elon Musk on Thursday, overwhelmingly approving a new, potentially $1 trillion (£760bn) compensation package that is conditional on the company achieving a series of extraordinary technological and financial milestones over the next decade.
The unprecedented deal was approved by 75% of votes and drew huge applause from the audience at the firm’s annual general meeting on Thursday.
Musk, who is already the world’s richest man, must drastically raise the electric car firm’s market value over 10 years. If he does this and meets various targets, he will be rewarded with hundreds of millions of new shares.
The decision, announced at the company’s annual shareholder meeting, secures what would be the largest executive compensation payout in corporate history if fully realized, and sets the stage for Musk to potentially become the world’s first trillionaire.
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Unprecedented Approval for an Unprecedented Sum
The measure passed with a decisive margin, securing more than 75% of the vote. The approval comes as a major victory for Musk and the Tesla board, who had aggressively campaigned for the package, arguing it was essential to retain the CEO’s focus during the company’s critical shift from an electric vehicle leader to an AI and robotics powerhouse.
This new plan was put forth amid ongoing legal uncertainty surrounding the $56 billion compensation deal Musk was originally awarded in 2018, which was invalidated by a Delaware court judge. By approving the new 2025 package, shareholders have re-affirmed their belief that Musk is the irreplaceable visionary needed to drive Tesla’s extreme growth ambitions.
Following the announcement, Musk took to the stage in Austin, Texas and danced to chants of his name.
“What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he said.
“Other shareholder meetings are snoozefests but ours are bangers. Look at this. This is sick,” he added.
The milestones Musk must achieve over the next decade to maximise his payout include raising Tesla’s market value to $8.5tn from $1.4tn at time of writing.
A Path to $8.5 Trillion
The pay package grants Musk new tranches of stock options, but he will receive zero salary or bonus and will only vest the shares if he hits a combination of financial and operational “Mars-shot” targets by 2035.
The full value of the plan—estimated to be around $1 trillion depending on Tesla’s stock price at the time of vesting—is contingent on 12 demanding milestones, including:
Market Capitalization: Boosting Tesla’s market valuation to a staggering $8.5 trillion (a nearly sixfold increase from its current valuation of approximately $1.45 trillion).
Financial Growth: Achieving $400 billion in actual earnings over four consecutive quarters.
Operational Deployment: Delivering key products that move Tesla beyond just auto manufacturing, such as:
Shipping 20 million electric vehicles.
Selling 10 million Full Self-Driving (FSD) subscriptions.
Deploying 1 million humanoid Optimus robots in commercial service.
Deploying 1 million robotaxis in a nationwide network.
Musk stated that the compensation was less about personal wealth and more about increasing his voting control—to nearly 30%—to ensure he has the “strong influence” necessary to guide the development of Tesla’s AI and robotics future.
Major Opposition Brushes Aside Governance Concerns
The vote followed weeks of intense public debate and drew vocal opposition from some of the world’s largest institutional investors and corporate governance watchdogs.
Leading critics, including Norway’s Sovereign Wealth Fund and the California Public Employees’ Retirement System (CalPERS), voted against the plan, citing concerns about the sheer magnitude of the award, potential dilution of existing shareholder value, and the lack of mitigation for “key person risk”. Proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) also recommended a “No” vote.
Despite these warnings about excessive compensation and Musk’s recent public controversies (which critics claim have hurt the Tesla brand), the majority of shareholders ultimately agreed with the board’s assertion that Musk is indispensable.
Tesla Chair Robyn Denholm had previously warned that rejecting the package risked Musk diverting his attention and talent to his other ventures, such as xAI, potentially causing a collapse in the stock price. With the new pay deal secured, Musk now has the financial incentive and the expanded stock ownership he sought to fully commit to turning Tesla into what he calls an “AI and robotics juggernaut.”
