Shareholders of Tesla Inc. have approved a record-breaking $1 trillion compensation package for Chief Executive Officer Elon Musk, the largest executive pay deal in corporate history.
The approval came at Tesla’s annual meeting in Austin, Texas, where over 75% of investors voted in favour of the package.
The deal ties Musk’s future earnings to a set of near-impossible milestones: producing 20 million electric vehicles, launching one million autonomous robotaxis, and raising Tesla’s market value to about $8.5 trillion.
Taking the stage amid loud cheers and the rhythmic moves of dancing robots, Musk declared that the company was “beginning a whole new book, not just a new chapter.”
He promised that the steering-less Cybercab robotaxi will roll out by April 2026 and confirmed plans to unveil a next-generation Roadster — Tesla’s fastest electric sports car yet.
A Defining Moment for Musk and Tesla
The vote represents a resounding show of faith in Musk’s leadership, after months of legal and investor battles over his earlier compensation plan, which had been frozen by a Delaware court.
The board had hinted that Musk might consider stepping back if the proposal was rejected — a message that likely pushed undecided investors to his side.
While critics condemned the package as “excessive and shareholder-hostile,” supporters argued it aligns his pay strictly with performance.
If all goals are met, Musk could control up to 12% of Tesla’s stock, valued at roughly $878 billion after deductions.
Under the terms, the shares will vest in stages as operational and market targets are achieved — a structure meant to secure his long-term focus.
Power and Influence Across AI Frontiers
Tesla’s board also won approval to invest directly in Musk’s artificial intelligence startup, xAI, a company he says will develop systems to rival OpenAI’s ChatGPT.
However tighter oversight is required to prevent conflicts of interest, given Musk’s simultaneous leadership of SpaceX, X Corp, and Neuralink.
Despite opposition from Norway’s sovereign wealth fund and leading advisory firms like Glass Lewis, the outcome showed how much of Tesla’s identity is tied to Musk himself. His 15% ownership stake and the loyalty of retail investors ultimately carried the day.
With the new deal approved, Musk now faces the immense challenge of translating bold ideas into tangible results. His vision of a global fleet of self-driving cars and humanoid robots has thrilled some investors and alarmed others.
Analysts say the next few years will test whether Tesla can evolve beyond car-making into a full-scale AI and robotics company.
“This is not about money,” Musk insisted. “It’s about having the influence needed to make Tesla’s vision real — a robot army that moves humanity forward.”
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