Tesla shareholders have voted overwhelmingly to approve a colossal pay package for Chief Executive Elon Musk that could ultimately be worth as much as $1 trillion, one of the largest compensation deals in corporate history.
The plan, designed to secure Musk’s long-term commitment to Tesla as it accelerates work in artificial intelligence and robotics, won more than 75 per cent support at the company’s annual general meeting on Thursday, according to a Tesla official.
A visibly elated Musk thanked investors for their backing, telling the cheering crowd at Tesla’s Austin factory: "I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes, I super-appreciate it."
Chants of "Elon" echoed across the hall as the results were announced.
The new package is intended to keep Musk at the helm for at least another seven and a half years and could boost his ownership stake from about 12 per cent to over 25 per cent if all targets are met.
Tesla Chair Robin Denholm urged shareholders to approve the deal, warning that the company’s share price could tumble if Musk were to step away.
Musk, already the world’s richest person with a net worth exceeding $500 billion, would need to meet 12 milestones tied to market capitalisation to unlock the full reward.
The first tranche would be triggered once Tesla’s value hits $2 trillion, up from roughly $1.5 trillion today.
The scheme also sets performance targets on profitability and product delivery, including the rollout of 20 million vehicles.
Analysts say the outcome underscores Musk’s continued hold over Tesla’s investor base, despite growing unease about his political views and the company’s recent dip in car sales.
"This sweeping vote cements Musk’s position as the AI revolution takes hold, giving us greater confidence in the Tesla story moving forward," said Dan Ives, an analyst at Wedbush Securities.
However, critics lambasted the move. Activist group Tesla Takedown described the payout as "a trillion dollars for failure," pointing to falling sales, safety concerns and Musk’s divisive politics.
"This isn’t leadership, it’s the world’s most expensive participation trophy," the group said in a statement.
The decision follows years of legal wrangling over a previous $55.8 billion award approved in 2018, which was struck down by a Delaware court earlier this year.
In response, Tesla’s board restructured the compensation plan, unveiling a temporary $29 billion arrangement before proposing the latest version.
Proxy advisers Glass Lewis and Institutional Shareholder Services (ISS) had both urged investors to reject the deal, arguing that Musk’s financial fortunes were already tightly bound to Tesla’s and warning that such a vast package could erode accountability.
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