Tesla CEO Elon Musk secured shareholder approval on Thursday for what is now the largest corporate pay package in history, as investors overwhelmingly backed his plan to transform Tesla into a global leader in AI and robotics.
More than 75% of shareholders voted in favor of the proposal during Tesla’s annual meeting at its Austin, Texas factory, where Musk appeared on stage flanked by dancing robots. The approval reinforces investor confidence in his long-term vision for autonomous vehicles, robotaxis, and humanoid robots, even as his political statements have sparked controversy this year.
Musk, already the world’s richest individual, could earn up to $1 trillion in Tesla stock over the next decade. However, after required payments, the total value would be about $878 billion. The board had previously warned that Musk might leave the company if the package was not approved, with many investors viewing the deal as a necessary incentive to keep him focused on Tesla’s growth.
“This isn’t just a new chapter for Tesla—it’s a whole new book,” Musk told cheering shareholders. He pledged to begin Cybercab production, Tesla’s steering-less two-seater robotaxi, by April, and to unveil the next-generation Roadster. He also hinted that Tesla may need to build a “gigantic chip fab” for AI chip production, possibly in partnership with Intel.
Shareholders Endorse Musk’s Vision for Tesla’s Future
Investors also voted to re-elect three Tesla board members, move to annual elections for all directors, and approve a new compensation plan to replace Musk’s earlier pay deal, which is currently under court review.
Musk’s other company, xAI, also received a vote of confidence, as shareholders approved Tesla’s investment in the artificial intelligence startup. Some investors, however, abstained, reflecting concerns about potential conflicts of interest between Musk’s ventures.
Corporate governance expert Jessica McDougall of Longacre Square noted that major investors will seek stronger board oversight to prevent overlap between Musk’s multiple companies.
Some large shareholders, including Norway’s sovereign wealth fund and proxy advisory firms Glass Lewis and ISS, opposed the plan, citing its enormous cost. Nonetheless, Musk’s ability to vote his 15% stake helped secure the outcome following Tesla’s move from Delaware to Texas.
The Biggest Pay Deal in Corporate History
Under the approved plan, Musk could receive up to 12% of Tesla’s stock if he achieves key performance and valuation milestones. Each milestone reached grants him 1% of stock, with rewards tied to both operational goals and market capitalization targets.
Over the next decade, Musk’s targets include producing 20 million vehicles annually, deploying 1 million robotaxis, selling 1 million humanoid robots, and earning $400 billion in core profit. Tesla’s market value would need to climb from its current $1.5 trillion to $8.5 trillion for him to receive the full payout.
Analyst Brian Mulberry from Zacks Investment Management said the deal aligns Musk’s incentives with shareholders: “If Tesla achieves these milestones, investors benefit from the same performance that drives his compensation.”
However, the plan remains controversial. Critics argue it could dilute existing shareholders’ stakes, while supporters say it’s essential to retain Musk and push Tesla toward its next stage of innovation.
Musk has emphasized that the package isn’t about money but about increasing his voting control as Tesla ramps up its ambitions in AI-driven robotics and autonomous mobility.
