Tesla shareholders overwhelmingly approved a compensation package for CEO Elon Musk that could be worth up to $1 trillion over the next decade, contingent on the company achieving ambitious performance milestones. The vote, announced at the annual shareholder meeting in Austin, Texas, on November 6, 2025, received more than 75% support. Musk celebrated the approval onstage with dancing Optimus robots, emphasizing Tesla's shift toward AI and robotics.
The approval came during Tesla's 2025 annual shareholder meeting at Gigafactory Texas, where over 75% of participating shareholders voted in favor of the package, excluding Musk's own 15% stake. Brandon Ehrhart, Tesla's general counsel, announced the results, prompting cheers and chants of "Elon! Elon!" from the crowd. Musk, flanked by the company's humanoid Optimus robots, danced briefly before addressing attendees. "I super appreciate it. Thank you, everyone," he said. "What we’re about to embark upon is not merely a new chapter on the future of Tesla but a whole new book." He described the meeting as a "banger," contrasting it with typical shareholder events he called "snoozefests."
The package, structured in 12 tranches, ties Musk's compensation to milestones including growing Tesla's market capitalization from about $1.5 trillion to $8.5 trillion, delivering 20 million vehicles, achieving 10 million active Full Self-Driving subscriptions, deploying 1 million robotaxis, and selling 1 million Optimus robots. It also requires $400 billion in core profit for four consecutive quarters and Musk's continued role as CEO for at least 7.5 years, plus developing a succession framework. Musk receives no salary; rewards come via up to 423.7 million additional shares, potentially increasing his ownership to 25-28.8% and voting influence.
This follows a disputed 2018 package worth $56 billion, invalidated by a Delaware court for conflicts of interest, leading Tesla to reincorporate in Texas. Shareholders also re-elected directors Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson, and approved a replacement for the 2018 plan. A proposal for Tesla to invest in Musk's xAI startup passed with majority support but significant abstentions, leaving next steps to the board.
Supporters, including the Tesla board and investors like Baron Capital's Ron Baron, argued the package aligns Musk's focus on Tesla amid distractions from SpaceX, xAI, and politics, which contributed to a sales dip earlier in 2025. "Without his relentless drive and uncompromising standards, there would be no Tesla," Baron said. Critics, such as Norway's sovereign wealth fund and proxy advisors Glass Lewis and ISS, opposed it over size, dilution, and key-person risk. Norges Bank Investment Management stated: "We are concerned about the total size of the award, dilution, and lack of mitigation of key person risk." Tesla shares rose about 3% in after-hours trading post-announcement.
Musk, with a net worth of around $473 billion per Bloomberg, framed the package as securing influence over Tesla's "robot army," not wealth. "It’s not like I’m going to go spend the money," he said last month. "There needs to be enough voting control to give [me] a strong influence – but not so much that I can’t be fired if I go insane." The vote underscores shareholder faith in Musk's vision despite Tesla's 2025 challenges, including a 9% earnings drop to $4.2 billion in Q3.
