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Tesla shareholders approved a $1tn compensation plan for CEO Elon Musk on Thursday, awarding the world’s richest man what would be the largest corporate payout in history if he meets the goals necessary to receive it.
The pay package, which several high profile investors opposed, demonstrates that shareholders still believe Musk can lead the automaker in an era dominated by robotics and artificial intelligence. Chants of “Elon” erupted in the room at the news of its approval.
“Thanks guys,” Musk said, after briefly dancing on stage alongside the company’s Optimus robots.
The result of the vote was announced at the annual shareholder event in Austin, Texas, with more than 75% of investors voting in favor of the plan.
Musk had previously claimed that he wanted the pay package so he could exert more control over the company and “strong influence over this robot army” that he vowed to build as the company branches into robotics.
If Musk delivers on the lofty milestones in the pay package laid out at Tesla’s 6 November annual meeting, he could become the world’s first trillionaire. To do so, he will need to guide Tesla to $8.5tn in market capitalization, eight times what it’s worth today. He will also be required to deploy millions of autonomous vehicles and humanoid robots and sustain the company’s bottom line in the hundreds of billions over the next decade.
The major goals of the compensation plan, split into 12 tranches, lay out a path for Tesla to reach the enormous market capitalization. If he brings the company to that financial height, Musk will be able to cash in on an additional 12% of the company’s stocks. To do so, he has to be vested in the company for at least 7.5 years. He will also have to help develop a long-term succession plan for the company he has led for more than 20 years.
The stock options provided by the new compensation plan, on top of shares guaranteed to him in his 2018 package, would leave Musk with 25% ownership of Tesla’s stock. As of 5 November, Tesla stock was trading close to its 52-week high, at about $450 per share.
Over the course of a decade, Musk will be required to deliver 20m of Tesla’s electric vehicles to buyers, sell 10m active full self-driving subscriptions, develop and sell 1m humanoid robots and deploy 1m robotaxis in commercial service.
Musk will also be required to bring the company to $400bn in actual earnings for four consecutive quarters. Tesla’s actual earnings for the third quarter of 2025 were $4.2bn, down 9% from the year prior.
As of November, Musk’s net worth was $460bn, the highest in the world, according to Bloomberg’s Billionaire Index.
More details soon …
