Fri Nov 07 13:45:03 UTC 2025: News Article:
Tesla Shareholders Approve Record-Breaking Pay Package for Musk, Paving Way for Potential Trillionaire Status
Austin, TX – Tesla CEO Elon Musk is poised to receive a corporate pay package of unprecedented size, potentially worth up to $878 billion, after a resounding shareholder vote on Thursday. The approval, exceeding 75%, came during Tesla’s annual general meeting in Austin, Texas.
The incentive plan is tied to Musk achieving a series of ambitious performance targets over the next decade. These include manufacturing 20 million vehicles, deploying 1 million robotaxis, securing 10 million subscriptions to Tesla’s Full Self-Driving feature, and generating up to $400 billion in profits. Moreover, Tesla’s market capitalization must steadily rise, starting at $2 trillion and reaching $8.5 trillion by 2035.
While the deal has garnered widespread attention for its sheer scale and the potential for Musk to become the world’s first trillionaire, it has also faced opposition. Major investors like Norway’s sovereign wealth fund, Glass Lewis, and Institutional Shareholder Services voiced concerns, citing the plan’s exorbitant size and the company’s shift towards AI rather than focusing on electric vehicles.
Despite the concerns, the Tesla board argued that the package is necessary to retain Musk’s leadership and drive Tesla’s ambitious future plans. The board warned that Musk might leave the company if the vote did not pass. After the announcement, Musk climbed on stage and danced while investors chanted his name. He expressed triumph, as well as appreciation for the shareholders after the vote tally.
Musk has outlined ambitious plans beyond electric vehicles, including the production of a steering-less robotaxi (“Cybercab”), the unveiling of a next-generation Roadster, and a push into AI, potentially involving collaboration with semiconductor giant Intel. The company’s Optimus robot, designed for repetitive or dangerous tasks, is also a key element of Musk’s vision.
“What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” Musk told cheering stakeholders.
The deal means Musk will receive no salary or cash compensation. Instead, he will be awarded up to 423.7 million additional Tesla shares, but only if he meets the specified milestones.
While analysts at Reuters estimate that Musk could still earn over $50 billion even without achieving all goals, the board emphasizes that the targets are “incredibly ambitious” and that Musk must “completely transform Tesla and society as we know it” to receive the full payout.
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