Tesla shareholders have approved an unprecedented $1 trillion compensation package for Chief Executive Officer Elon Musk, setting a new record for the largest executive pay deal in corporate history.
The approval came during Tesla’s annual general meeting in Austin, Texas, where more than 75 percent of shareholders voted in favor of the plan. The package allows Musk to unlock stock awards worth up to $1 trillion over the next decade if he meets ambitious performance milestones — including building 20 million electric vehicles, deploying one million robotaxis, and raising Tesla’s market value to as high as $8.5 trillion.
Taking the stage to cheers and dancing robots, Musk described the vote as a turning point for the company. “We are beginning a whole new book in Tesla’s story,” he said, promising to begin production of the steering-less, two-seater Cybercab robotaxi by April and to unveil a new-generation Roadster electric sports car soon after.
Shareholders also re-elected three board members and approved a motion for annual board elections a move viewed as strengthening corporate governance. The meeting further ratified a replacement for Musk’s earlier pay package, which had been blocked in court.
The Tesla board had warned that Musk might consider stepping back from the company if the new package was rejected, adding pressure on investors ahead of the vote. While critics denounced the deal as “excessive,” supporters argued it ties Musk’s rewards directly to performance and aligns with shareholders’ long-term interests as Tesla transitions from an automaker to a technology and robotics company.
Investors also approved a proposal allowing Tesla to invest in Musk’s artificial intelligence firm, xAI, despite concerns about potential conflicts of interest. Corporate governance experts urged close oversight to ensure transparency between Musk’s overlapping ventures.
Although major shareholders such as Norway’s sovereign wealth fund and several proxy advisory firms opposed the plan, Musk’s 15 percent ownership stake helped secure its passage — a result analysts say underscores his enduring influence and the strong confidence investors continue to place in his leadership.
Under the terms of the deal, Musk’s stock options will vest in phases as Tesla achieves specific operational and market-cap targets. Meeting all milestones would give him roughly 12 percent of the company’s shares, valued at about $878 billion after deductions, though partial completion could still earn him tens of billions of dollars.
Musk maintained that the package was not about personal wealth but about ensuring he retains the influence necessary to drive Tesla’s long-term vision of a future powered by autonomous vehicles and humanoid robots.
With this record-breaking approval, Tesla now faces the challenge of turning Musk’s ambitious promises into tangible results a major test of innovation, leadership, and investor confidence in one of the boldest corporate strategies in modern history.
