Photo Credit: Getty Images
Tesla shareholders have approved what is now considered the most lucrative compensation plan in corporate history — a pay package for CEO Elon Musk potentially worth nearly $1 trillion. The decision, backed by about 75% of votes, was met with roaring applause at the company’s annual general meeting held Thursday in Austin, Texas.
The deal, which ties Musk’s payout entirely to Tesla’s performance over the next decade, sets some of the most ambitious targets ever seen in the automotive and technology sectors. To claim the full package, Musk must drive Tesla’s market value from $1.4 trillion to $8.5 trillion, deliver 20 million vehicles, produce one million humanoid robots, and secure 10 million Full Self-Driving (FSD) subscriptions — all while achieving up to $400 billion in core profits.
If those milestones are met, Musk would receive over 400 million new Tesla shares, valued at roughly $1 trillion. He will not receive a salary under this arrangement.
Taking the stage after the vote, Musk celebrated the outcome with a dance as the crowd chanted his name. “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he told shareholders. “Other shareholder meetings are snoozefests, but ours are bangers. Look at this. This is sick.”
Tesla’s board defended the package, claiming that failing to secure Musk’s commitment risked losing him entirely. Critics, however, have labelled the payout excessive and questioned whether Musk’s attention is too divided across his multiple ventures.
During his presentation, Musk placed heavy emphasis on the Optimus robot, a humanoid prototype first unveiled in 2022. Designed to perform “unsafe, repetitive or boring tasks,” Optimus is powered by the same artificial intelligence systems that run Tesla’s self-driving cars. Musk predicted that everyone would eventually want one, calling it central to Tesla’s future.
This shift in focus has drawn mixed reactions from analysts. Gene Munster of Deepwater Asset Management noted on X that Musk’s “new book starts with Optimus,” pointing out that he made little mention of Tesla’s car business or its self-driving initiatives during the meeting.
Still, Musk later touched on the FSD program, claiming Tesla was “almost comfortable” letting drivers “text and drive essentially,” despite ongoing U.S. regulatory investigations into the safety of the feature following multiple crash incidents.
Tesla shares rose slightly in after-hours trading and are up more than 60% in the last six months. Yet, the company continues to face stiff competition in electric vehicles and autonomous driving technology, alongside challenges tied to Musk’s public image.
Investor Ross Gerber, CEO of Gerber Kawasaki, described the pay deal as “another notch in the unbelievable things you see in business,” but warned that Musk’s polarizing persona had hurt Tesla’s brand. “Elon seems to be divorced from the reality that his opinion among the public is so low,” he said.
Longtime Tesla supporter Dan Ives of Wedbush Securities, however, defended the decision, calling Musk “Tesla’s biggest asset.” He suggested the approval could signal “the beginning of an AI-driven valuation for Tesla.”
While legal and governance questions remain — particularly following a Delaware court’s earlier rejection of a similar pay plan — Tesla’s move to reincorporate in Texas allowed this fresh vote to proceed. Institutional giants like Norway’s sovereign wealth fund and CalPERS opposed the deal, leaving Musk reliant on Tesla’s vast base of retail investors.
Whether Musk can deliver on the towering promises tied to this record-breaking deal remains to be seen. But for now, Tesla’s shareholders have doubled down on their faith in the man whose ambitions continue to redefine the limits of corporate vision and reward.
