Tesla shareholders voted overwhelmingly to approve a $1 trillion compensation package for CEO Elon Musk, contingent on achieving ambitious performance targets over the next decade. The approval, with more than 75% in favor, came during the company's annual meeting on November 6, 2025. The package aims to align Musk's incentives with Tesla's growth in AI, robotics, and electric vehicles.
On November 6, 2025, at Tesla's annual shareholder meeting, more than 75% of voting shareholders approved a landmark $1 trillion compensation package for CEO Elon Musk. The plan, structured in 12 tranches of stock options, could grant Musk up to 25% ownership of the company if specific milestones are met by 2035. These include boosting Tesla's market capitalization to $8.5 trillion, delivering 20 million vehicles annually, achieving 10 million Full Self-Driving (FSD) subscriptions, deploying 1 million robotaxis in commercial operation, and producing 1 million Optimus humanoid robots. Additional targets involve reaching $400 billion in adjusted EBITDA over four consecutive quarters.
The approval follows a Delaware judge's 2024 ruling that voided Musk's previous $56 billion package from 2018, citing undue board influence. Tesla relocated its incorporation to Texas amid ongoing appeals. Despite opposition from major shareholders like Norges Bank Investment Management, the world's largest sovereign wealth fund and Tesla's sixth-largest institutional holder, which voted against it over concerns of over-reliance on one individual, the measure passed with strong support from retail investors and executives.
Jack Dorsey, former Twitter CEO, endorsed the package on X, stating, “This is not about compensation. it’s about ensuring a principled (and exciting!) engineering approach to the company’s future.” Musk replied with a heart emoji. Analyst Daniel Ives of Wedbush called it a reaffirmation of Musk as a “wartime CEO” for the AI revolution, maintaining an Outperform rating with a $600 price target. Musk celebrated the vote, posting on X: “It sure is a tall order 😂 Anyone can buy Tesla stock right now and come along for the ride. There will inevitably be some bumps along the way, but, with a truly immense amount of work, I think these goals can be accomplished.”
Critics, including proxy advisors ISS and Glass Lewis, urged rejection, warning of governance risks. Shua Sanchez of Safe Autonomous Vehicles Everywhere expressed concerns that the plan incentivizes rushing autonomous tech without prioritizing safety. At the meeting, Musk described the approval as opening “a new book” for Tesla, emphasizing massive increases in vehicle and Optimus production.
