Tesla shareholders have approved an unprecedented pay package for CEO Elon Musk that could be worth nearly $1 trillion, following a 75% vote in favor during the company’s annual general meeting in Austin, Texas. The approval sparked loud applause as Musk took the stage, dancing to chants of his name and calling it “a whole new book” for Tesla’s future.
Under the 10-year performance-based plan, Musk will not receive a salary but could earn over 400 million Tesla shares; valued at about $1 trillion, if he achieves several ambitious milestones. These include producing 20 million vehicles, building one million robots, attracting 10 million Full Self-Driving (FSD) subscriptions, deploying one million robotaxis, generating $400 billion in profit, and raising Tesla’s market valuation from $1.4 trillion to $8.5 trillion.
The deal, previously struck down by a Delaware judge due to concerns about the board’s closeness to Musk, was reapproved after Tesla reincorporated in Texas. However, it faced opposition from major investors, including Norway’s sovereign wealth fund and California’s CalPERS. Retail investors ultimately played a key role in pushing the package through.
Musk emphasized Tesla’s growing focus on artificial intelligence and robotics, spotlighting the Optimus humanoid robot during the meeting. Designed to handle repetitive or unsafe tasks, Optimus represents what Musk sees as the next major step in Tesla’s evolution. “What we’re about to embark upon is not just a new chapter, but a new book,” he said.
Analysts remain divided. Wedbush Securities’ Dan Ives called Musk “Tesla’s biggest asset” and predicted strong AI-driven growth for the company, while investor Ross Gerber noted that Musk’s polarizing public image has hurt Tesla’s brand. “Elon seems to be divorced from the reality that his opinion among the public is so low,” Gerber said.
Despite the controversy, Tesla shares have risen more than 60% over the past six months, even as sales struggle and regulators continue investigating its self-driving technology. For Musk, who already owns 13% of Tesla, the approved deal strengthens his control over the company and marks another bold bet on his long-term vision for electric vehicles, robotics, and AI.
