In a stunning display of shareholder confidence, Tesla investors have voted overwhelmingly to approve a massive, performance-based compensation package for CEO Elon Musk—a deal that could ultimately be worth as much as $1 trillion if every ambitious milestone is met.
The vote, held at the company’s annual meeting, was more than a routine business decision; it was a reaffirmation of faith in Musk’s leadership and his bold vision for transforming Tesla from a leading electric vehicle (EV) maker into a powerhouse in Artificial Intelligence (AI) and Robotics.
A Payout That Rewrites History
This compensation plan is unprecedented in corporate history. It is a stock-option package split into 12 tranches that will only vest if Tesla hits a series of financial and operational targets over the next decade.
The scale of the ultimate payout—estimated by many to be around $1 trillion, assuming maximum success and stock growth—is a number that rivals the Gross Domestic Product (GDP) of entire countries. However, this is emphatically not a guaranteed salary; it is an all-or-nothing bet on hyper-growth.
The Moonshot Milestones Musk Must Hit
To unlock the full $1 trillion value, the compensation package ties Musk to achieving what can only be described as “moonshot” goals that fundamentally reshape the company and, arguably, the world. These milestones include:
- Market Capitalization: Driving Tesla’s valuation from its current level to a staggering $8.5 trillion over the vesting period. This involves reaching multiple $500 billion market cap increments.
- Vehicle Production: Delivering a cumulative total of 20 million Tesla vehicles, more than double the company’s output over its prior history.
- Operational Goals: Successfully deploying 1 million robotaxis into commercial service, achieving 10 million Full Self-Driving (FSD) subscriptions, and producing 1 million humanoid robots (Optimus).
- Core Profit: Achieving $400 billion in specified core profits over the decade.
The message is clear: Musk only gets the historic payout if he delivers historic growth that makes every shareholder significantly richer in the process.
The Board’s Warning: Retain the Visionary
The vote proceeded despite strong opposition from certain large institutional investors and proxy advisory firms, who criticized the size of the award and its concentration of power.
However, the Tesla Board of Directors successfully argued that this plan was essential for securing Musk’s commitment to the company. They contended that failing to approve the massive incentive package risked losing the visionary CEO to his other burgeoning ventures (like SpaceX, xAI, and Neuralink), which they warned could significantly harm Tesla’s future value and ambition in AI and robotics.
As the Board chair stated, the vote was ultimately about whether shareholders wanted to retain and motivate the one leader they believe can transform Tesla into the most valuable company in the world. The answer, with more than 75% of votes cast in favor, was a resounding “Yes.”
A New Chapter in the Tesla Story
Upon the announcement of the vote, cheers and chants of “Elon!” erupted at the shareholder meeting in Austin, Texas. Musk, flanked by dancing Optimus robots, acknowledged the support, declaring that “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.”
The $1 trillion vote signals that Tesla’s investor base is ready to back Musk’s grandest ambitions, accepting the unprecedented scale of the compensation as a necessary risk for unprecedented rewards. The focus now shifts entirely to execution. Musk has secured his incentive; now, he must deliver on the promise of the AI and robotics future that shareholders have effectively banked on.
