Tesla shareholders approve Elon Musk’s $1T pay package

Tesla shareholders have officially approved a massive compensation package for CEO Elon Musk valued at up to $1 trillion in stock, marking the largest executive pay deal in corporate history.

More than 75% of participating shareholders voted in favour of the plan, a level of support consistent with previous compensation votes for Musk. The announcement came Thursday during Tesla’s annual shareholder meeting at the company’s Austin, Texas, Gigafactory, where the crowd erupted in chants of “Elon! Elon!” as the results were read aloud.

Flanked by a group of dancing Optimus robots, Musk addressed the audience:

“What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.”

How the Pay Package Works

Under the deal, Musk will not receive a salary or immediate payout. Instead, the plan ties his compensation to a series of 12 performance milestones, focused on Tesla’s operational growth, profitability, and market capitalisation.

Each milestone unlocks additional tranches of stock awards if achieved. To achieve a full $1 trillion valuation, Tesla — currently valued at roughly $1.5 trillion — must increase its market capitalisation to $8.5 trillion over the next decade.

While some of the goals are ambitious, others are scaled-down versions of targets Musk has outlined in past years.

Months of Aggressive Campaigning

The vote caps off two months of intense lobbying by Tesla’s leadership. The company launched a rare marketing blitz to encourage shareholder participation, running TV advertisements, releasing public letters, and dispatching executives across various media outlets.

Tesla chairwoman Robyn Denholm, known for her low public profile, became the campaign’s face, giving multiple interviews and even losing her voice by the time she addressed shareholders at Thursday’s meeting.

“Tesla is at an inflection point — I think I’ve said that 3,000 times over the last few weeks — and this last year has been a critical one in our history,” Denholm said.

The company’s campaign prominently referenced its “Master Plan 4”, a visionary but vague document outlining Tesla’s long-term ambitions to achieve “sustainable abundance” through robotics, AI, and clean energy innovation.

Musk’s Push for Control

Musk argued that the pay package was less about financial reward and more about maintaining influence over Tesla’s strategic direction.

Currently owning around 15% of Tesla, Musk has repeatedly stated he wants at least 25% voting control, saying that such ownership would prevent him from being ousted and allow him to guide Tesla’s ambitious AI and robotics goals — including what he describes as a “robot army.”

He has also suggested he might leave Tesla or reduce his focus on the company if the package were rejected.

Legal and Historical Context

Tesla’s previous compensation package, approved in 2018 and valued at $56 billion, was struck down by the Delaware Chancery Court earlier this year for lack of transparency in its negotiation.. Tesla has since appealed the decision.

Earlier in 2025, the company granted Musk $29 billion in shares to offset the voided 2018 plan — an amount that will be rescinded if Tesla’s appeal is successful.

The newly approved plan gives Musk another opportunity to secure both massive wealth and reinforced control of Tesla’s direction as it pursues advancements in AI, robotics, and autonomous vehicles.

This story is developing…