Tesla shareholders have overwhelmingly approved an unprecedented $1 trillion compensation plan for CEO Elon Musk, marking the largest executive pay package in corporate history. The approval, announced at Tesla's annual shareholder meeting in Austin, Texas, saw over 75% of voting shareholders in favor, signaling strong investor confidence in Musk's leadership as the company aims to revolutionize not just electric vehicles, but also artificial intelligence and robotics.

This ambitious pay deal stretches over a decade and links Musk's compensation to highly challenging performance milestones. To unlock the full value of the package, Tesla must grow its market valuation from around $1.5 trillion today to an extraordinary $8.5 trillion by 2035. Additional targets include producing 20 million vehicles annually, launching one million robotaxis, and securing 10 million full self-driving software subscriptions within three months, among other financial goals. Musk's Tesla stake would increase from about 12-13% to roughly 25% if all targets are met.​

Musk, who has not drawn a salary in years, expressed heartfelt gratitude to shareholders after the vote, saying, "I super-appreciate it." The compensation is mostly stock options distributed in 12 tranches tied to performance outcomes, aligning Musk’s interests closely with the company's long-term growth. Tesla’s board chair highlighted that retaining Musk is critical for steering Tesla through its next phase of innovation and competitive challenges, particularly as rivalry in EV and AI sectors intensifies globally.​

The plan also reflects Musk's desire to solidify control with at least 20% voting power in Tesla, securing him influence over the company’s strategic direction amid emerging opportunities in AI and robotics. This is especially significant as Tesla ventures heavily into new realms like its Optimus humanoid robots and robotaxi services—sectors that could redefine the company's future beyond automotive manufacturing.​

While widely supported by shareholders, the compensation package also faces scrutiny regarding governance and dilution concerns, particularly since Musk's 2018 pay plan is currently under legal review. Nonetheless, institutional investors like Morgan Stanley’s Counterpoint Global and the Florida State Board of Administration back the deal, citing Musk’s transformative leadership and the package’s alignment with shareholder value creation.​

Tesla’s approval of this historic $1 trillion pay package represents not only a bold bet on Elon Musk’s visionary leadership but also a push for the company to scale new technological heights. If Tesla achieves its ambitious targets, this deal could redefine executive compensation and cement Musk’s role in shaping the future of mobility, AI, and robotics for years to come.