Tesla shareholders have approved Elon Musk’s $1 trillion compensation package
South African businessman Elon Musk arrives at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024. (Photo by ETIENNE LAURENT / AFP) (Photo by ETIENNE LAURENT/AFP via Getty Images)
Tesla shareholders have approved CEO Elon Musk’s record-breaking pay package, potentially worth nearly $1 trillion (£760 billion) — the largest in corporate history.
The deal passed with about 75% of votes at Tesla’s annual general meeting in Austin, Texas, where Musk was met with cheers and applause. Under the agreement, he will receive no salary, but could be awarded over 400 million Tesla shares if he achieves a set of ambitious goals over the next decade.
To unlock the full payout, Musk must lift Tesla’s market value from $1.4 trillion to $8.5 trillion, while meeting targets that include producing 20 million vehicles annually, one million humanoid robots, 10 million Full Self-Driving (FSD) subscriptions, and up to $400 billion in core profits.
Tesla’s board argued that the package was essential to retain Musk, warning that he might leave if it was rejected. “We couldn’t afford to lose him,” one board member said.
Musk Celebrates and Looks to the Future
Following the announcement, Musk celebrated on stage with a brief dance, declaring: “What we’re about to embark upon is not just a new chapter, but a whole new book.”
He focused much of his remarks on Optimus, Tesla’s humanoid robot designed to perform “unsafe, repetitive or boring” tasks. The prototype, first unveiled in 2022, uses the same AI systems that power Tesla’s vehicles. Musk has described it as central to Tesla’s future — both in factories and, eventually, in homes.
Analyst Gene Munster of Deepwater Asset Management noted that Musk’s emphasis on Optimus suggests where his priorities lie: “No mention of cars, FSD, or robotaxis yet,” he wrote on X.
Divided Reaction and Legal Hurdles
The approval follows months of debate and comes after a Delaware judge invalidated Musk’s previous pay plan, ruling Tesla’s board was too close to him. Tesla has since reincorporated in Texas, where the new vote was held.
Several major institutional investors, including Norway’s sovereign wealth fund and CalPERS, opposed the package. That left Musk relying on Tesla’s large base of retail investors, who tend to back him enthusiastically.
Investor Ross Gerber called the package “another notch in the unbelievable things you see in business,” though he warned that Musk’s polarizing image could hurt Tesla’s brand. Others, like Wedbush analyst Dan Ives, defended the decision, calling Musk “Tesla’s biggest asset.”
Tesla shares rose slightly in after-hours trading and are up over 60% in the past six months, though the company continues to face slowing sales and rising competition in electric vehicles and autonomous driving.
As Musk told investors in Austin, “This isn’t just about cars — it’s about creating the future.”