Tesla Shareholders Approve Elon Musk’s $1 Trillion Payout Plan

Tesla shareholders have approved an unprecedented $1 trillion performance award for CEO Elon Musk, cementing his role at the company’s helm for years to come. The plan, which passed with 75% shareholder support, ties Musk’s payout to highly ambitious milestones that could make Tesla the world’s most valuable company and Musk the first-ever trillionaire.

Musk must meet bold milestones before unlocking full payout

Under the 2025 CEO Performance Award, Musk’s compensation will come entirely in 12 tranches of stock options, each tied to Tesla’s market valuation and operational goals. The company must first reach a $2 trillion valuation and eventually an $8.5 trillion market cap for the full package to vest, up from its current $1.54 trillion.

Operationally, Tesla must deliver 20 million vehicles over the decade, deploy 1 million robotaxis, and place 1 million humanoid robots into service. The company also aims for up to $400 billion in cumulative “core profits,” representing one of the most ambitious growth targets in corporate history, according to TradingView. If achieved, Musk’s ownership stake could climb from 13% to roughly 25%.

Mixed reactions as Tesla bets big on its CEO’s vision

Not all investors welcomed the massive package. Norway’s sovereign wealth fund and CalPERS both voted against it, citing governance and pay concerns. However, Tesla’s board defended the deal, arguing that losing Musk could derail Tesla’s long-term plans for autonomous mobility and AI-driven robotics.

Speaking to an enthusiastic crowd in Austin, Texas, Musk called the moment “a whole new book” in Tesla’s story. “Other shareholder meetings are snoozefests, but ours are bangers,” he said as fans cheered. The vote also signals renewed investor faith in Tesla’s broader ecosystem, from vehicle production to energy systems and AI development, as it transitions into a diversified technology powerhouse.

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