Elon Musk has secured shareholder approval for what is now the largest corporate pay package in history. The vote, held during Tesla’s annual meeting at its Austin, Texas factory, saw more than 75% of investors back the plan.
The deal could see Elon Musk earn up to $1 trillion in Tesla stock over the next decade. However, after adjustments, the real value stands at about $878 billion. The package is designed to keep Musk focused on transforming Tesla into a global leader in artificial intelligence, robotics, and self-driving technology.
During the meeting, Musk appeared on stage surrounded by dancing robots, promising a bold future for Tesla. “What we are about to embark upon is not merely a new chapter, but a whole new book,” he told cheering shareholders.
The board argued that Musk’s pay package was essential to retain his leadership, warning that he might leave without it. Critics, however, said the amount was excessive. Still, many investors agreed that the plan aligns Musk’s success with shareholder returns since he will only be paid if Tesla meets strict financial and operational goals.
Future milestones for Elon Musk include delivering 20 million vehicles, deploying 1 million robotaxis, and generating up to $400 billion in core profit. Tesla’s market value must also grow from $1.5 trillion to $8.5 trillion for him to receive full compensation.
At the same meeting, shareholders re-elected three directors, approved annual board elections, and voted to support Tesla’s investment in Musk’s artificial intelligence company, xAI.
The approval eases concerns that Elon Musk might shift his attention toward his other ventures, such as SpaceX or xAI. The board and several investors believe the new pay structure will drive Tesla’s long-term growth and innovation.
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