In a corner commercial move, Tesla investors have officially approved a stunning $1 trillion compensation package for CEO Elon Musk.
The decision, finalised at the company’s periodic meeting in Austin, Texas, saw over 75% shareholders vote in favour of the deal, despite wide debate among major investors.
This blessing cements one of the largest pay packages ever granted to a commercial superintendent, tying Musk’s fiscal prices directly to Tesla’s request growth and performance milestones.
Ambitious Targets Behind the Pay Package
The trillion-dollar plan isn’t a simple payout; it’s a challenge. To receive the full amount, Musk must steer Tesla’s market value from around $1.1 trillion to an astonishing $8.5 trillion, surpassing the combined worth of tech giants Meta, Microsoft, and Alphabet.
The pretensions are inversely audacious. Over the coming decade, Tesla must deliver 20 million electric vehicles, emplace 1 million robotaxis, manufacture 1 million creatural robots, and secure 10 million full-tonne-driving subscriptions.
Musk must also maintain earnings growth over eight consecutive quarters to unlock all 12 tranches of the plan, each valued at 35.3 million shares.
The structure is designed to align Musk’s ambitions with Tesla’s long-term transformation into a global force in artificial intelligence and robotics, not just electric cars.
Divided Opinions Among Investors
The vote followed a fierce debate. Heavyweight investors and proxy advisers such as CalPERS, Norges Bank, ISS, and Glass Lewis criticised the plan as excessively large and risky.
Norway’s $2 trillion sovereign wealth fund warned of “dilution and key person risk,” highlighting concerns over Musk’s dominant influence.
Yet others backed the deal wholeheartedly. Supporters, including Charles Schwab and billionaire Ron Baro,n argued that the package guarantees Musk’s focus and innovation drive.
“Elon Musk’s leadership has always been about bold moves and relentless ambition. This plan keeps him focused on the future, not distracted by short-term gains,” one supporter stated.
Currently holding around 15% of Tesla, Musk could see his stake rise to nearly 29% if he meets all targets, making him the world’s first trillionaire. Forbes currently estimates his net worth at approximately $504 billion.
A Defining Moment for Tesla and Corporate Pay
The approval of Musk’s record-breaking deal signals a defining moment in corporate history. It reflects Tesla shareholders’ faith in his vision of expanding the company beyond electric mobility into AI, robotics, and autonomous systems.
While critics warn that the move concentrates too much power in one individual, supporters see it as a commitment to continuity, innovation, and global leadership.
Love him or not, Elon Musk has once again proven that when it comes to ambition, there are no half measures. The trillion-dollar test has officially begun.
