Tesla Shareholders Approve Elon Musk’s $1T Pay Package

Tesla shareholders have voted overwhelmingly in favour of a compensation plan for CEO Elon Musk that could ultimately be worth up to $1 trillion in company stock.

More than 75% of participating shareholders approved the plan — a level of support similar to Musk’s previous compensation packages. When the results were announced at Tesla’s Austin, Texas, factory, shareholders in attendance erupted into chants of “Elon! Elon!”

Standing onstage alongside dancing Optimus robots, Musk told the crowd on Thursday that “what we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.”

Under the agreement, Musk will not immediately receive $1 trillion — nor will he receive a salary. Instead, he could earn hundreds of billions of dollars and gain greater control over Tesla if he helps the company achieve a series of profitability and performance milestones. Some of these targets will be difficult, while others are viewed as relaxed versions of goals Musk has long promoted.

The compensation plan consists of 12 tranches, tied to operational metrics, adjusted profitability, and market capitalisation goals. Each milestone awards Musk additional shares when met. For example, Tesla — currently valued at approximately $1.5 trillion — must reach a valuation of $8.5 trillion within the next decade for one of the tranches.

The vote followed two months of intense lobbying by Tesla, its board, and several top executives. The company made repeated public appeals urging shareholders to support the plan. Chairwoman Robyn Denholm — typically media-averse — gave multiple high-profile interviews and even lost part of her voice ahead of Thursday’s meeting. In a rare move, Tesla also aired television ads promoting the vote, something it does not even do for its vehicles.

“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 told investors at the meeting.

Musk argued that approving the package was the simplest way to increase his voting power at Tesla. He currently controls roughly 15% of the company, but has repeatedly threatened to leave if he cannot secure about 25% of the company — a level he says is necessary to prevent him from being removed and to protect the “robot army” Tesla is building.

Tesla promoted the plan heavily by pointing to its “Master Plan 4,” which it described as a roadmap for Musk’s long-term vision. The document, released in September, has been criticised for lacking detail—a criticism Musk himself acknowledged. He promised additional specifics shortly after its release, but no updates have followed.

The board presented this new compensation plan partly because Musk’s previous $56 billion package from 2018 was struck down last year by Delaware’s Chancery Court, which ruled Tesla had not been transparent about how the plan was negotiated. Tesla is currently appealing that decision.

Earlier this year, Tesla awarded Musk $29 billion in shares to compensate for the voided 2018 package,, but said the award would becancelleded if Tesla prevails in its appeal.