More than 75 percent of Tesla shareholders have approved a controversial compensation package for CEO Elon Musk, potentially worth up to a trillion US dollars. The payout depends on ambitious goals, including a market capitalization of 8.5 trillion dollars in ten years and the deployment of one million Robotaxis. Despite recommendations to reject it, Musk prevailed to secure his influence in the company.
At the annual general meeting, more than 75 percent of shareholders voted in favor of the package, granting Musk up to 423.74 million additional Tesla shares in twelve tranches. These are tied to milestones such as market value jumps in 500-billion-dollar increments, starting at a total value of two trillion dollars. Operational goals include delivering 20 million vehicles at that value, and later, at a 6.5 trillion dollar market capitalization, achieving and maintaining an adjusted earnings before interest, taxes, and depreciation of 400 billion dollars.
Further requirements are that Musk remains CEO for ten years, Tesla deploys one million Robotaxis, and delivers one million AI robots. The potential 8.5 trillion dollar market capitalization would be nearly six times the current value. Chairwoman Robyn Denholm emphasized: “Musk gets nothing if Tesla misses the targets.” Musk himself stated that more important than the money was increasing his stake to 25 percent to secure his influence—enabled by full voting rights after the move to Texas, where his 15 percent stake counts.
The approval came despite opposition: Two influential proxy advisors and major investors like the Norwegian sovereign wealth fund recommended rejection. Shareholders also re-elected three board members and approved a replacement plan for a previously blocked package due to a lawsuit. Tesla is currently grappling with declining sales—the second year in a row—growing competition, and US import tariffs under President Trump, which cost over 400 million dollars in the last quarter, as CFO Vaibhav Taneja said. Musk, the world's richest person with over 470 billion dollars in wealth, sees the future in Robotaxis and humanoid robots. The stock rose more than three percent in after-hours trading.
