Tesla shareholders have given the green light to a record-breaking pay deal for CEO Elon Musk, potentially worth nearly $1 trillion, following a resounding 75% approval vote at the company’s annual meeting in Austin, Texas.
The monumental package, which drew cheers from investors in attendance, ties Musk’s compensation entirely to performance over the next decade. To earn the full reward, he must hit ambitious milestones — from scaling Tesla’s market value to $8.5 trillion to delivering 20 million electric vehicles and deploying a million robotaxis.
Musk, already the world’s richest man, won’t receive a salary under the new agreement. Instead, his payout could total over 400 million Tesla shares — but only if the company reaches its lofty goals.
After the vote, a jubilant Musk danced on stage to chants of his name, declaring,
> “This isn’t just a new chapter for Tesla — it’s a whole new book.”
He praised the energy of the gathering, joking that “other shareholder meetings are snoozefests, but ours are bangers.”
Ambitious Goals and Rising AI Aspirations
Musk’s immediate focus appears to be on Optimus, Tesla’s humanoid robot project. Initially unveiled in 2022, Optimus is designed to take on “unsafe or repetitive tasks” using the same AI technology that powers Tesla’s self-driving vehicles. Musk envisions the robot becoming central to Tesla’s factories — and eventually, to homes worldwide.
Analysts, however, have expressed mixed feelings.
> “Let it sink in where Musk’s head is at,” noted Gene Munster of Deepwater Asset Management. “His ‘new book’ starts with Optimus — not cars.”
Musk later mentioned Tesla’s Full Self-Driving (FSD) feature, claiming the company was “almost comfortable” letting drivers “text and drive essentially.” The statement comes amid ongoing U.S. regulatory probes into Tesla’s self-driving software after several crashes.
Shareholder Reactions and Industry Debate
Tesla’s stock climbed slightly after the announcement and has surged over 60% in the past six months. Still, not all investors are convinced.
Ross Gerber, CEO of Gerber Kawasaki, described the approval as “another unbelievable chapter in business,” but warned that Musk’s divisive persona has hurt Tesla’s image.
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> “Elon seems divorced from reality when it comes to how low his public approval has fallen,” he said.
Some major institutional investors, including Norway’s sovereign wealth fund and CalPERS, opposed the deal, arguing it gives Musk excessive control. The outcome relied heavily on Tesla’s large base of small, retail shareholders — many of whom remain loyal to Musk’s vision.
Legal Challenges and the Road Ahead
This latest package follows a previous multi-billion-dollar pay deal struck down by a Delaware court earlier this year over concerns that Tesla’s board was too close to Musk. In response, the company relocated its incorporation to Texas, where this new agreement was approved.
Ann Lipton, a corporate law professor at the University of Colorado, said the plan mirrors Musk’s 2018 compensation — one he achieved ahead of schedule — but warned it places no limits on his external ventures or political involvement.
Despite controversy, analysts like Dan Ives of Wedbush Securities remain optimistic.
> “Musk is Tesla’s greatest asset,” Ives wrote, predicting that Tesla’s future valuation will be increasingly driven by artificial intelligence innovation.
As Tesla pushes into robotics and autonomous systems, one thing remains certain: Elon Musk continues to shape — and polarize — the future of technology, business, and leadership.
