The Tesla TSLA board has approved Musk’s pay package.
TEsla shareholders approve Elon Musk’s $1 trillion pay package
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Tesla shareholders have decisively approved a new ten-year pay package for CEO Elon Musk, potentially valued at as much as $878 billion. The vote is seen as a strong endorsement of Musk’s ambitious vision to transition the electric vehicle manufacturer into a leader in artificial intelligence and robotics.
Analysts suggest the approval is a positive development for Tesla’s stock, as its valuation is heavily dependent on Musk’s future-focused goals. These include the widespread rollout of self-driving robotaxis and the development of humanoid robots, despite recent brand damage from Musk’s political commentary.
The approval was widely anticipated, particularly after the company relocated its incorporation from Delaware to Texas. This move allowed Musk to exercise the full voting power of his approximately 15% stake, helping to secure the win despite significant opposition from major investors, including Norway’s sovereign wealth fund. Tesla’s board had cautioned that Musk might step down if the package was rejected.
The board and supporting investors argue the plan ultimately benefits shareholders. It is designed to secure Musk’s long-term focus, which some feared was diluted by his work at SpaceX, xAI, and in politics.
The compensation is entirely performance-based, tied to a series of challenging milestones. To be paid, Musk must lead Tesla to deliver 20 million vehicles, operate 1 million robotaxis, and sell 1 million robots. Critically, Tesla’s stock value must also rise significantly, climbing from its current $1.5 trillion valuation to $2 trillion and eventually reaching $8.5 trillion.