SAN FRANCISCO — Tesla CEO Elon Musk secured shareholder approval on Thursday for what is being called the largest corporate pay package in history, valued at up to $1 trillion in stock over the next decade. The vote, which passed with more than 75% support, took place at the company’s annual meeting in Austin, Texas, where Musk celebrated on stage alongside dancing robots.
The package ties Musk’s compensation to Tesla’s ambitious growth targets, including producing 20 million vehicles annually, launching a robotaxi fleet, and selling humanoid robots. However, to unlock the full payout, Tesla’s market capitalization would need to soar from its current $1.5 trillion to $8.5 trillion. Even partial success could earn Musk tens of billions of dollars in stock.
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The Tesla board defended the pay plan as essential for retaining Musk’s focus amid concerns he could prioritize ventures like SpaceX or xAI. Critics, including Norway’s sovereign wealth fund and advisory firms Glass Lewis and ISS, argued the package was excessively large and lacked sufficient oversight. Nonetheless, supporters say the plan ensures investors benefit if Tesla achieves its lofty goals.
At the event, Musk outlined Tesla’s future vision — from launching its Cybercab robotaxi to building a massive AI chip factory in partnership with Intel. He also confirmed plans to unveil the next-generation Roadster electric sports car later this year. “This is not just a new chapter for Tesla,” Musk said. “It’s a whole new book.”
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Shareholders also approved the reelection of three board members and voted in favor of annual elections for all directors. Despite ongoing legal challenges to Musk’s earlier pay package, the approval signals strong investor faith in his leadership and Tesla’s transformation from an EV maker into a robotics and AI powerhouse.