Tesla shareholders have approved an unprecedented $1 trillion compensation package for CEO Elon Musk, the largest executive pay deal in corporate history — reaffirming his central role in steering the company toward a future built on artificial intelligence and robotics.
The vote took place Thursday at Tesla’s annual general meeting in Austin, Texas, where more than 75% of shareholders backed the proposal. The plan grants Musk the right to unlock stock awards worth up to $1 trillion over the next decade, contingent on achieving a series of ambitious performance milestones — including producing 20 million vehicles annually, launching one million robotaxis, and boosting Tesla’s market value to $8.5 trillion.
Taking the stage to cheers — flanked by Tesla’s dancing humanoid robots — Musk hailed the approval as the start of a “whole new book” in Tesla’s evolution. He promised production of the Cybercab, a steering-less autonomous taxi, would begin in April, and teased an upcoming debut for the next-generation Roadster sports car.
Shareholders also re-elected three board members and endorsed annual board elections, a move analysts say signals growing calls for stronger corporate governance. They also approved a replacement for Musk’s earlier compensation plan, which had been struck down in Delaware court last year.
The Tesla board had warned that Musk might walk away from the company if the package were rejected, raising the stakes for investors. While critics labeled the deal “excessive,” supporters argued that tying Musk’s rewards to performance aligns his incentives with shareholders as Tesla expands beyond electric cars into AI-driven robotics and energy systems.
In a separate vote, shareholders authorized Tesla to invest in Musk’s artificial intelligence startup, xAI, despite concerns about potential conflicts of interest. Governance experts urged stricter oversight to ensure boundaries between Musk’s ventures remain clear.
The package’s approval came despite opposition from several major investors, including Norway’s $2 trillion sovereign wealth fund and key proxy advisory firms, who objected to the scale and concentration of power it grants Musk. However, his 15% ownership stake and support from retail investors proved decisive.
Under the terms of the plan, Musk’s stock awards will vest incrementally as Tesla meets operational and market-cap targets. If all are achieved, Musk’s ownership could rise to about 29% of the company, worth roughly $878 billion after adjustments — though even partial success would net him tens of billions.
“This isn’t about personal wealth,” Musk said at the meeting. “It’s about ensuring I have the influence necessary to push forward Tesla’s mission — to create a robot army of autonomous vehicles and humanoid machines that will change the world.”
With the record-breaking package now approved, Tesla faces the immense challenge of turning Musk’s lofty promises into reality — a test of innovation, execution, and investor faith in one of the boldest corporate visions ever pursued.
