Tesla shareholders on Thursday overwhelmingly approved a massive compensation package for CEO Elon Musk, potentially worth up to $1 trillion, according to a company official at the annual meeting.
The package was designed to ensure Musk remains with Tesla as the company advances in artificial intelligence and robotics, garnering more than 75 percent shareholder support.
“I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes,” Musk told the gathering. “I super-appreciate it.”
Cheers of “Elon” erupted at the Austin factory where the vote took place.
The compensation plan aims to secure Musk’s presence at Tesla for at least seven-and-a-half years, potentially increasing his stake in the company from around 12 percent to more than 25 percent. Musk has previously indicated he might leave or reduce his role if his ownership share does not provide sufficient influence over Tesla’s future.
Musk has described Tesla’s potential growth as nearly boundless, saying in July that it “will be the most valuable company in the world by far” if the company delivers on autonomous driving and AI innovations.
Read Also
READ ALSO: Elon Musk xAI Set to Launch Wikipedia Alternative Grokipedia
In support of the package, Tesla Chair Robin Denholm emphasised Musk’s importance to the company’s future, warning that stock could plunge if he departed.
Despite Musk’s controversial political affiliations, the board has largely ignored criticism regarding any impact on sales. Previous pay packages, including a $55.8 billion 2018 deal, faced legal challenges in Delaware courts, prompting the board to approve an interim $29 billion award in August before unveiling the current plan in September.
Activist group Tesla Takedown condemned the vote, stating: “Elon Musk just got one trillion dollars for failure. Sales are down, safety risks are up and his politics are driving customers away. This isn’t leadership — it’s the world’s most expensive participation trophy.”
Conversely, Wedbush analyst Dan Ives argued the vote reflects Musk’s pivotal role in the AI Revolution, providing confidence in Tesla’s trajectory.
Musk, with a net worth exceeding $500 billion, must achieve 12 milestones—including market capitalization targets and operational goals—to unlock the full pay package.
The first tranche becomes available when Tesla hits $2 trillion in market value, up from the current $1.5 trillion, alongside objectives like delivering 20 million vehicles.
