Tesla shareholders have approved the largest CEO pay package in corporate history, clearing the way for Elon Musk to receive up to $1 trillion in stock as he pushes to transform the electric vehicle giant into a powerhouse of AI, robotics, and self-driving technology.
At Tesla’s annual meeting in Austin, Texas, over 75% of investors voted in favor of Musk’s massive compensation plan, reinstating a package that had been held up in court and reinforcing his control over Tesla’s future. The vote also greenlit Tesla’s potential investment in Musk’s AI startup, xAI, despite conflict-of-interest concerns.
Musk took the stage with dancing robots and declared the vote as a turning point. “This is not merely a new chapter of the future of Tesla, but a whole new book,” he said.
If Musk hits all targets outlined by Tesla’s board, he could be awarded stock worth $878 billion—potentially more depending on valuation swings. Key milestones include building 20 million cars annually, deploying 1 million robotaxis, selling 1 million humanoid robots, and raising Tesla’s market cap from $1.5 trillion to as high as $8.5 trillion.
The plan awards Musk 1% in Tesla stock for each operational and valuation goal achieved. Even partial progress could net him tens of billions of dollars. Tesla’s board emphasized that the payout is performance-based, designed to only reward value creation.
The approval came after some pushback from major investors, including Norway’s sovereign wealth fund and proxy firms Glass Lewis and ISS, who warned the package could dilute shareholder value. Still, the vote passed easily after Tesla’s relocation to Texas enabled Musk to fully exercise his 15% stake.
Some investors saw the package as necessary to keep Musk engaged amid distractions from SpaceX, xAI, and his political activity. “Will the growth offset these concerns of dilution—or is this just giving Elon his wish of enough influence to shape the future of AI? That remains to be seen,” said Brian Mulberry of Zacks Investment Management.
Musk, now poised to gain a larger voting stake, said his focus is not just on compensation, but on leading Tesla into an era of autonomous machines. “Other shareholder meetings are like snoozefests,” he said. “Ours are bangers.”
