Tesla Shareholders Approve Elon Musk's $1 Trillion Pay Package

Sat Nov 08 2025 15:24:54 GMT+0200 (Eastern European Standard Time)

In a landmark decision, Tesla shareholders have approved a controversial pay deal for CEO Elon Musk, potentially worth nearly $1 trillion, contingent on ambitious performance targets.

Elon Musk's unprecedented pay package, worth up to $1 trillion, has been approved by 75% of Tesla shareholders during the company's annual general meeting. Musk's compensation hinges on the achievement of specific milestones over the next decade, including shipping millions of vehicles and achieving substantial profits. The decision has sparked debate about the scale of executive compensation, but board members defended it as a means to retain Musk's leadership as Tesla faces financial challenges and competition in the industry.

Tesla boss Elon Musk has had a record-breaking pay package that could be worth nearly $1tn (£760bn) approved by shareholders.

The unprecedented deal was approved by 75% of votes and drew huge applause from the audience at the firm's annual general meeting on Thursday.

Musk, who is already the world's richest man, must drastically raise the electric car firm's market value over 10 years. If he does this and meets various targets, he will be rewarded with hundreds of millions of new shares.

The scale of the potential payout has drawn criticism, but the Tesla board argued that Musk might leave the company if it was not approved - and that it could not afford to lose him.

Following the announcement, Musk took to the stage in Austin, Texas and danced to chants of his name.

What we're about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book, he said.

The milestones Musk must achieve over the next decade include:

Delivering 20 million Tesla vehicles and one million robots
Getting 10 million subscriptions to Tesla's Full Self-Driving feature
Bringing one million self-driving Robotaxi vehicles into commercial operation
Earning up to $400bn in core profit
Eventually lifting Tesla's overall market value to $8.5tn, currently $1.4tn

He won't receive a salary under the agreed deal. But meeting all the above milestones would see him awarded a stock grant of more than 400 million additional Tesla shares - worth around $1tn if the firm's market value is raised high enough.

Musk's early remarks on Thursday placed the spotlight on the Optimus robot, dashing the hopes of some long-time analysts and Tesla watchers who want him to focus on reviving the company's electric vehicle business.

Using the same artificial intelligence (AI) systems as those powering Tesla vehicles, the Optimus robot is designed to perform unsafe, repetitive or boring tasks. Musk has championed this technology as central to Tesla's future.

In recent weeks, members of Tesla's board of directors have campaigned in favor of Musk's new pay package with a marketing blitz that has drawn criticism from corporate governance experts.

While shareholders have shown strong support for Musk, the deal has raised concerns over potential governance issues and the impact of Musk's polarizing public persona on the brand's value.

Wedbush Securities' Dan Ives highlighted that Musk remains a major asset for Tesla, and his vision is expected to drive the company towards an AI-driven valuation in the coming months.

As the industry evolves, Tesla will continue facing competition, particularly in the robo-taxi market, while striving to meet aggressive production and profitability targets.