In a landmark decision, Tesla shareholders have overwhelmingly approved a massive compensation package for CEO Elon Musk — one that could soar to a staggering $1 trillion. The decision, which received more than 75 percent support, was announced during the company’s annual meeting held at Tesla’s Austin factory on Thursday.
The pay package, crafted to secure Musk’s leadership as Tesla pushes deeper into artificial intelligence and robotics, marks one of the largest in corporate history. “I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes,” Musk said with evident excitement. As the results were announced, chants of “Elon!” filled the hall, underscoring the billionaire’s enduring influence and popularity among Tesla’s investor base.
Musk, known as both a visionary entrepreneur and a polarizing public figure, has faced criticism for his outspoken political stances, including his alignment with right-wing figures such as former U.S. President Donald Trump. Yet, the vote signals investors’ continued faith in his ability to steer Tesla into the next era of technological advancement.
Under the new plan, Musk’s stake in Tesla could rise from around 12 percent to over 25 percent, ensuring his involvement in the company’s leadership for at least seven and a half more years. The proposal is seen as a strategic move to keep Musk committed to Tesla’s future and to deter him from shifting focus to his other ventures, including SpaceX, Neuralink, and X (formerly Twitter).
Tesla Chairwoman Robin Denholm emphasized that retaining Musk was critical to maintaining investor confidence and Tesla’s market value. She cautioned that the company’s stock could tumble if Musk were to step down or reduce his involvement. “Elon’s vision and execution are the foundation of Tesla’s success,” Denholm argued, urging shareholders to support the package.
The new plan follows years of legal battles and scrutiny over Musk’s compensation. A previous $55.8 billion deal, approved in 2018, was blocked by a Delaware court after shareholder lawsuits challenged its fairness. In response, Tesla’s board redesigned the compensation structure, first approving an interim $29 billion award in August before unveiling the more extensive $1 trillion plan in September.
Despite mounting criticism from some quarters, shareholders once again stood firmly behind Musk. Activist group Tesla Takedown condemned the decision, arguing that it rewards poor performance amid falling vehicle sales and growing safety concerns. “Elon Musk just got one trillion dollars for failure,” the group said in a statement. “Sales are down, safety risks are up, and his politics are driving customers away. This isn’t leadership — it’s the world’s most expensive participation trophy.”
Analysts, however, viewed the vote as a bullish signal for Tesla’s future. Wedbush Securities’ Dan Ives remarked that the overwhelming approval “cements Musk’s leadership at a critical moment as the AI revolution takes hold,” predicting renewed momentum for Tesla’s stock.
According to Forbes, Musk already holds the title of the world’s richest person with a net worth exceeding $500 billion. To unlock the full payout of his new package, he must achieve 12 performance milestones tied to Tesla’s market capitalization, profitability, and product goals. The first tranche will become available once Tesla’s market value hits $2 trillion — up from its current $1.5 trillion.
Notably, proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) criticized the proposal, warning that its structure could weaken accountability. ISS highlighted that the “unprecedented” scale of the deal and lack of clear conditions ensuring Musk’s focus on Tesla might pose long-term risks.
Still, for Tesla’s loyal investors, Thursday’s vote was more than just a financial decision — it was a reaffirmation of their faith in Musk’s vision of transforming Tesla into the most valuable company in the world through advancements in autonomous driving and artificial intelligence.
As Musk declared during the meeting, “Tesla’s potential is nearly boundless.” And with this record-breaking pay package now approved, his journey to make that vision a reality has gained even greater momentum.