Tesla shareholders voted overwhelmingly to approve a compensation plan for CEO Elon Musk that could exceed $1 trillion over the next decade, provided the company meets ambitious operational and market goals. The vote, which garnered more than 75 percent support, comes amid criticism over Musk's divided attention across multiple companies. The plan aims to secure Musk's long-term commitment to Tesla's growth in autonomous vehicles and AI.
On November 6, 2025, at Tesla's annual shareholder meeting, investors approved a new pay package for Elon Musk, potentially worth more than $1 trillion if all targets are achieved by 2035. The plan awards Musk 423,743,904 shares in 12 tranches of 35,311,992 shares each, contingent on milestones such as delivering 20 million vehicles, securing 10 million Full Self-Driving subscriptions, deploying 1 million AI robots, operating 1 million robotaxis, and reaching $400 billion in adjusted EBITDA. It also includes 12 market capitalization milestones up to $8.5 trillion, boosting Musk's ownership from about 15 percent to 24.8 percent—or 28.8 percent if Tesla wins an appeal in a related court case.
The approval follows the voiding of Musk's 2018 pay plan, valued at $56 billion, by a Delaware judge in January 2024 due to board conflicts. Tesla responded by moving its headquarters to Texas and issuing an interim $29 billion award in August 2025 for 96 million shares. Musk has warned he might leave without greater influence, stating last month, “It’s not like I’m going to go spend the money. It’s just, if we build this robot army, do I have at least a strong influence over that robot army? Not control, but a strong influence.”
Critics, including New York Comptroller Thomas DiNapoli, argued the package rewards “unchecked power” rather than performance, given Musk's roles at SpaceX, X, and xAI. DiNapoli, whose fund holds over 3.3 million Tesla shares, said Musk’s existing stake “should already be incentive enough.” Corporate governance expert Nell Minow called Musk a “part-time CEO,” noting the plan lacks requirements for him to limit outside activities or political involvement. Norway’s sovereign wealth fund and proxy firm ISS also opposed it, citing dilution and key-person risk.
Supporters, led by Tesla Chair Robyn Denholm, emphasized Musk's unique value. In an October 27 letter, she asked shareholders, “Do you want to retain Elon as Tesla’s CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions?” Denholm told investors, “Other CEOs might like to play golf. He doesn’t play golf. So, he likes to create companies.” Investor Ron Baron of Baron Capital praised the plan, writing on X that it ensures “shareholders win first” if aggressive goals are met. Tesla's presentation highlighted that Musk “earns nothing” without success, though reports suggest he could still gain over $50 billion from easier targets.