Elon Musk handed a potential $1 trillion pay by Tesla investors

Tesla shareholders have officially approved a staggering pay package for CEO Elon Musk — one that could ultimately be worth as much as $1 trillion in company shares.

Over 75% of shareholders voted in favour of the plan, matching the strong support Musk has typically received in previous compensation votes. The announcement at Tesla’s Austin, Texas factory prompted cheers and chants of “Elon! Elon!” from shareholders as Musk stood alongside the company’s humanoid Optimus robots, declaring that the company was entering “not merely a new chapter, but a whole new book” in its journey, as per TechCrunch.

The newly approved compensation structure does not grant Musk the full trillion dollars immediately — nor does it include any base salary. Instead, his earnings are tied to an ambitious 12-tranche performance plan, rewarding him with shares as Tesla achieves key milestones in profitability, operational performance, and market capitalisation.

Currently valued at roughly $1.5 trillion, Tesla would need to climb to an extraordinary $8.5 trillion valuation within the next decade for Musk to unlock the full reward. The package therefore hinges on Tesla’s ability to scale aggressively while maintaining profitability — goals that critics say include rehashed promises Musk has floated in the past.

The shareholder approval follows an intense two-month campaign by Tesla’s board and executives, who launched an unprecedented push to rally investor support. Chairwoman Robyn Denholm, typically reserved in public appearances, gave multiple interviews and said that Tesla was at an “inflection point,” describing the past year as a pivotal moment in the company’s history. Tesla even ran television ads urging investors to vote yes — a rare move for a brand that famously avoids advertising its vehicles.

Musk personally urged shareholders to back the deal, stating that it would give him greater voting control within the company. He currently owns about 15% of Tesla’s stock, but has repeatedly hinted at leaving the company if he does not gain roughly 25% control, arguing that such a stake would protect him from being ousted and enable him to maintain control over Tesla’s ambitious “robot army” projects.

Tesla’s board advanced this new package in part to replace Musk’s 2018 compensation plan, previously valued at $56 billion, which was struck down by Delaware’s Chancery Court earlier this year. The court ruled that Tesla had not been sufficiently transparent about the negotiation process, prompting Tesla to appeal the decision.

Earlier in the year, the company granted Musk $29 billion in shares as an interim measure, which it said would be voided if Tesla wins its appeal in Delaware.

The company has also tied the package to its latest strategic vision, the “Master Plan 4,” which Musk unveiled last September. While critics noted that the plan lacked specific details, Tesla executives have described it as a framework for Musk’s long-term leadership — one aimed at cementing his role as both the face and driving force behind the electric carmaker’s next phase of growth.

If Tesla achieves its lofty targets, the package could make Musk the first executive in history to earn a trillion-dollar payout, further reinforcing his dominance over one of the world’s most valuable companies.