Tesla CEO Elon Musk has secured shareholder approval for the largest compensation package in corporate history, a potential $1 trillion in stock options tied to Tesla’s performance over the next decade.
The proposal received more than 75% shareholder support during Tesla’s annual meeting on Thursday at the company’s Austin, Texas factory—where Musk celebrated on stage alongside dancing humanoid robots.
The vote affirms investor confidence in Musk’s ambitious plan to transform Tesla from an electric vehicle maker into a leader in artificial intelligence and robotics, even as his political views and management of multiple companies have sparked controversy.
“What we are about to embark upon is not merely a new chapter of Tesla’s story, but a whole new book,” Musk told cheering shareholders.
The new compensation plan replaces a previous pay package that was struck down by a Delaware court. Tesla also re-elected three board members and approved annual board elections.
Musk, already the world’s richest person, could receive roughly 12% of Tesla’s stock if he meets a series of aggressive targets—including producing 20 million vehicles, operating 1 million robotaxis, and achieving a $8.5 trillion company valuation.
Some large investors, including Norway’s sovereign wealth fund and proxy firms Glass Lewis and ISS, opposed the package, warning it could dilute shareholder value. But Tesla’s board argued the deal aligns Musk’s compensation with company success, since he only benefits if Tesla’s value soars.
The plan’s approval also quells concerns that Musk might step back from Tesla had the deal failed.
“Other shareholder meetings are snoozefests—ours are bangers,” Musk quipped, emphasizing his excitement for Tesla’s AI and robotics future.
Tesla shareholders also voted to allow the company to invest in Musk’s AI startup, xAI, despite concerns over potential conflicts of interest. The move is expected to boost both firms as Tesla expands its self-driving technology.
Analysts say Musk’s challenge now is turning vision into results.
“Whether this package fuels Tesla’s growth or just gives Musk more influence over AI remains to be seen,” said Brian Mulberry, portfolio manager at Zacks Investment Management.
