Tesla shareholders have given the green light to a record-breaking $1 trillion compensation package for CEO Elon Musk, setting the stage for what could become the largest corporate payout in history and potentially making him the world’s first trillionaire.
Quick Summary – TLDR:
- Over 75% of Tesla shareholders voted in favor of Musk’s new pay package.
- The deal could make Musk the first person ever worth $1 trillion if he meets long-term performance goals.
- Critics say the plan gives Musk too much control, while supporters call it a vote of confidence in Tesla’s AI and robotics future.
- The plan revives Musk’s 2018 compensation package that was previously struck down by a Delaware court.
What Happened?
During Tesla’s annual shareholder meeting in Austin, Texas, more than three-quarters of investors approved the multitrillion-dollar compensation plan for Elon Musk. The decision, met with cheers and chants of “Elon,” reinforced shareholder faith in his leadership despite slowing sales and rising competition. The approval also restores Musk’s previously voided 2018 pay package and grants him up to 423.7 million additional Tesla shares over the next decade.
Elon Musk is officially a trillionaire
— Megatron (@Megatron_ron) November 7, 2025
Only 18 countries have a nominal GDP exceeding $1 trillion in the world. pic.twitter.com/yeZYemaOMo
Record Payout Tied to Bold Performance Goals
Musk’s new pay plan is structured in 12 performance-based tranches, each tied to Tesla’s market growth and operational targets. To unlock the full amount, Musk must guide Tesla to a market capitalization of $8.5 trillion, a monumental leap from its current value. Each $500 billion increase in Tesla’s valuation earns Musk an additional 1% of company stock.
To achieve this, he must deliver 20 million Tesla vehicles over the next ten years, deploy 1 million humanoid robots and 1 million robotaxis, and reach $400 billion in annual earnings for four consecutive quarters. If he achieves these milestones, Tesla could become more valuable than most of the world’s economies, pushing Musk’s net worth well beyond historical records.
Supporters See an AI-Driven Future
Supporters describe the approval as a vote of confidence in Musk’s vision to transform Tesla from an electric vehicle manufacturer into a leader in artificial intelligence and robotics. Musk said Tesla’s next growth phase will center on Optimus, the humanoid robot project he called “the biggest product of all time.” “You now get a free Optimus and it’s just going to follow you around and stop you from doing crime,” Musk joked on stage while dancing next to the robots.
He said the robots could transform industries from healthcare to security. Financial analyst Dan Ives of Wedbush Securities called the decision “a huge win for shareholders,” adding that Musk’s leadership is critical to Tesla’s shift toward AI and automation.
Critics Call It Excessive and Risky
Not everyone is celebrating the outcome. Major institutional investors like CalPERS and Norway’s sovereign wealth fund voted against the plan, arguing that it grants excessive power to Musk while Tesla’s financial performance weakens. Corporate watchdogs Institutional Shareholder Services and Glass Lewis also opposed the proposal, warning that it could reinforce a cult of personality around Musk.
Some analysts questioned whether any CEO deserves such an enormous payout given falling sales and growing competition in the EV market. “Elon Musk just got $1 trillion for failure,” said advocacy group Tesla Takedown, pointing to declining sales and safety issues. “This isn’t leadership, it’s the world’s most expensive participation trophy.”
A Vote With High Stakes
Tesla’s board warned that rejecting the package could result in Musk’s exit from the company, a risk that alarmed many investors. Musk himself confirmed that his motivation was not money but greater control over Tesla’s future projects, particularly the company’s “robot army,” which he said could be dangerous if mishandled. The approval also follows Musk’s decision to move Tesla’s corporate base from Delaware to Texas after a court invalidated his 2018 compensation plan. The new Texas-based approval effectively reinstates that arrangement under state law.
Daily Research News Takeaway
I think this story captures the Elon Musk paradox perfectly: a visionary who drives technological revolutions while constantly testing the limits of corporate governance. The $1 trillion figure sounds unbelievable, but it shows the level of faith investors still have in Musk’s leadership and Tesla’s AI-driven future. Whether he reaches the trillionaire milestone or not, this vote marks a defining chapter for both Tesla and the future of executive compensation.
