Tesla Shareholders Approve Elon Musk’s $1 Trillion Pay Package
Tesla shareholders have approved a historic compensation plan for CEO Elon Musk, granting him the potential to earn $1 trillion in stock options over the next decade, contingent on the company achieving a series of performance milestones. The vote, held at Tesla’s annual meeting in Austin, Texas, saw more than 75% of shareholders voting in favor of the plan.
The package ties Musk’s payout to ambitious targets, including a market capitalization reaching approximately $8.5 trillion, annual vehicle deliveries of around 20 million, deployment of 1 million robotaxis, and the sale of 1 million humanoid robots. The board has emphasized that Musk will only earn portions of the package as Tesla meets each milestone, aligning his compensation with the company’s long-term performance.
Several major investors voiced objections, including Norway’s Norges Bank Investment Management, citing concerns over shareholder dilution, Musk’s influence, and key-person risk. Proxy advisory firms also raised governance concerns, noting that the plan gives Musk enormous control while Tesla continues to face operational and regulatory challenges.
Tesla’s board defended the package as essential for retaining Musk and aligning his incentives with the company’s ambitious growth strategy, which extends beyond electric vehicles into robotics, AI, and autonomous services. Internal filings indicated that the board viewed Musk as central to the company’s long-term vision and that his departure could impact strategic objectives.
If all milestones are met, Musk would become the first individual to amass $1 trillion or more in compensation tied to a single company. However, the targets are highly ambitious, and experts have noted significant execution risks, as well as concerns about board independence and oversight given Musk’s multiple leadership roles across Tesla, SpaceX, and other ventures.
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