Tesla shareholders have approved CEO Elon Musk’s record-breaking pay package —potentially worth up to $1 trillion — in a decisive vote that underscores both investor faith and controversy surrounding the world’s richest man.
About 75% of shareholders voted in favour of the compensation plan at the company’s annual general meeting in Austin, Texas, on Thursday. The deal ties Musk’s earnings to a series of ambitious milestones, including raising Tesla’s market capitalization from $1.4 trillion to $8.5 trillion and deploying one million self-driving robotaxis.
“What we’re about to embark upon is not merely a new chapter for Tesla, but a whole new book,” Musk told cheering investors. “Other shareholder meetings are snoozefests—but ours are bangers.”
The approval comes despite concerns about Tesla’s slowing profits and Musk’s focus on side projects like SpaceX, X (formerly Twitter), and his Optimus robot initiative. Analyst Gene Munster noted that Musk’s speech “started with Optimus, not cars or robotaxis,” calling it telling of where his attention lies.
Tesla’s board argued the massive payout was essential to retain Musk’s leadership. “We could not afford to lose him,” the board said. Critics, including major institutional investors like Norway’s sovereign wealth fund and CalPERS, opposed the deal, citing weak governance and overreliance on Musk’s personality.
Investment analyst Ross Gerber ctold the BBC the deal was “another notch in the unbelievable things you see in business,” warning that Musk’s “polarizing persona” was eroding Tesla’s brand. Still, Dan Ives of Wedbush Securities defended the outcome, describing Musk as “Tesla’s biggest asset” and predicting that “AI-driven valuation” would unlock new growth for the company.
The new package revives a similar 2018 compensation plan that was struck down by a Delaware judge earlier this year. Following that decision, Tesla reincorporated in Texas, where the new plan was reintroduced and approved.
Despite the controversy, Tesla shares have risen more than 60% in the past six months, signaling investor confidence that Musk can again deliver extraordinary growth—even as competition in China and Europe intensifies.
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