Tesla Shareholders Approve Elon Musk's $1 Trillion Compensation Package

Tesla shareholders on Thursday approved an unprecedented compensation package for CEO Elon Musk that could reach $1 trillion over the next decade, endorsing his vision to transform the electric vehicle (EV) manufacturer into a leader in artificial intelligence (AI) and robotics.

The proposal, which represents one of the largest corporate pay packages in history, received more than 75% support from shareholders during the company's annual meeting held at the Gigafactory in Austin, Texas.

The full compensation is contingent upon Tesla successfully hitting ambitious financial and operational targets by 2035. These goals require the company to achieve significant milestones in market capitalization, starting at $2 trillion and scaling up to $8 trillion, alongside specific targets for vehicle delivery and the deployment of robotaxis. If all targets are met, the plan would also increase Musk's control of the business from his current 12% stake to approximately 25%.

The approval was largely anticipated, despite significant opposition from prominent institutional investors. Norway's sovereign wealth fund, along with influential investment advisory firms Glass Lewis and Institutional Shareholder Services (ISS), had recommended that shareholders vote against the plan, arguing that the size of the compensation could decrease overall shareholder value.

Following the preliminary vote results, Musk celebrated the victory on stage, appearing alongside two of the company's humanoid robots, known as Optimus products.

"What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book," Musk said, emphasizing the company's shift toward becoming an AI and robotics juggernaut.

To unlock the full value of the compensation, Tesla must establish itself as the market leader in autonomous driving technology and robotics, surpassing competitors not only in the U.S. but also across Europe and other major global regions.

The potential $1 trillion payout could make Musk, who is already considered the wealthiest person globally, the world's first trillionaire if the company achieves the required performance metrics.

Following the shareholder vote, shares of Tesla rose in after-hours trading. Musk was allowed to vote his roughly 15% stake in the company toward the approval of the package.