Fri Nov 07 03:38:33 UTC 2025: Tesla Shareholders Approve Massive Pay Package for Elon Musk, Potentially Worth $1 Trillion
Austin, Texas – Tesla shareholders overwhelmingly approved a controversial compensation package for CEO Elon Musk on Thursday, potentially worth up to $1 trillion. The proposal, designed to incentivize Musk’s continued leadership as Tesla pursues advancements in artificial intelligence and robotics, garnered over 75% support at the company’s annual meeting.
A jubilant Musk expressed his gratitude, saying, “I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super-appreciate it.” Cheers of “Elon!” erupted after the vote announcement.
The package aims to increase Musk’s stake in Tesla from roughly 12% to over 25%, contingent on achieving ambitious milestones related to market capitalization, operational profit, and production goals, including delivering 20 million vehicles. Musk must hit 12 milestones related to market capitalization to receive the full pay package. The first tranche would be available when Tesla reaches $2 trillion in market value, up from its current $1.5 trillion.
While proponents, including Tesla Chair Robin Denholm, argued that securing Musk’s long-term commitment is vital to the company’s future success, critics have decried the unprecedented size of the award.
Tesla Takedown, an activist group, slammed the decision, citing declining auto sales, rising safety risks, and Musk’s controversial political stances. “Elon Musk just got one trillion dollars for failure,” the group stated.
Wedbush analyst Dan Ives lauded the decision, saying the approval cements Musk’s position as the AI Revolution takes hold giving us greater confidence in the Tesla story moving forward.”
The decision follows a previous 2018 compensation package worth $55.8 billion which was blocked by a Delaware court after shareholder litigation. Proxy advisory firms like Glass Lewis and Institutional Shareholder Services (ISS) also recommended against the current proposal, arguing that Musk’s interests are already closely aligned with Tesla’s performance and questioning the absence of explicit requirements ensuring his focus on the company.
Despite the criticism, the vote underscores Musk’s strong support among Tesla’s investor base.
First Piper 