Tesla shareholders have approved Elon Musk's record-breaking $1 trillion pay package, cementing his influence over the company's future as it pivots toward AI, robotaxis and humanoid robots. The plan passed with more than 75% support at Tesla's annual meeting in Austin, Texas, where Musk appeared on stage alongside dancing robots.
Already the world's richest person, Musk could receive up to $878 billion in stock over the next decade if Tesla meets a series of performance and valuation milestones. The vote was seen as crucial for retaining Musk, whose leadership and far-reaching ambitions continue to shape Tesla's identity, even as his political statements have dented the brand's image.
Tesla's future tied to Musk's vision
The board had warned Musk might leave without the deal, which is tied to achieving targets such as 20 million cars delivered, 1 million robotaxis, and $400 billion in profit. Tesla's market value would also need to rise from $1.5 trillion to $8.5 trillion for Musk to receive the full payout.
While major investors like Norway's sovereign wealth fund opposed the package, supporters argued that the rewards align with shareholder success. As one analyst put it, "Whether this fuels Tesla's next era of innovation or just gives Musk more control, that remains to be seen."