In a move that has sent shockwaves through both the automotive and corporate worlds, Tesla shareholders have overwhelmingly approved a pay package for CEO Elon Musk that could be worth nearly $1 trillion—by far the largest corporate compensation deal in history. The vote, held at Tesla’s annual general meeting in Austin, Texas, saw more than 75 percent of shareholders back the unprecedented plan, according to Reuters and BBC News. If Musk meets a series of audacious performance targets over the next decade, he could become the world’s first trillionaire, cementing his place atop the global wealth rankings.
The numbers alone are staggering. Under the terms of the new agreement, Musk stands to receive up to 423.7 million additional Tesla shares, which, if all goals are met and the company’s valuation soars as planned, could be worth as much as $1 trillion over the next ten years. After accounting for required repayments to the company, the net payout would still clock in at a jaw-dropping $878 billion. Musk, who is already valued at approximately $473 billion according to Bloomberg, would be propelled into a league of his own if he manages to cross the trillion-dollar threshold.
Shareholders’ approval didn’t come quietly. The event itself was anything but ordinary, with Musk taking to the stage amid chants of his name, dancing and declaring, “Other shareholder meetings are like snoozefests, but ours are bangers. I mean, look at this. This is sick.” As BBC News reported, Musk told the crowd, “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.” The atmosphere was electric, with Musk expressing deep appreciation: “I super appreciate it. Fantastic group of shareholders. Hang on to your Tesla stock.”
But what does Musk have to do to unlock this colossal payday? The bar has been set sky-high. The performance targets are nothing short of transformative for both Tesla and, arguably, society at large. Musk must oversee the manufacture of 20 million vehicles over the next decade, bring 1 million operational robotaxis to the roads, and secure 10 million subscriptions to Tesla’s Full Self-Driving (FSD) feature. In financial terms, he needs to generate up to $400 billion in profits and drive Tesla’s market valuation from its current $1.4-$1.5 trillion to a mind-boggling $8.5 trillion by 2035. These milestones aren’t just ambitious—they’re historic.
The Tesla board made it clear that Musk would receive “zero” unless these goals are met, emphasizing the all-or-nothing nature of the deal. However, an analysis by Reuters suggested that even partially meeting the targets could net Musk more than $50 billion, underscoring just how lucrative the package could be.
Not everyone was thrilled by the scale of the proposal. Major institutional investors, including Norway’s sovereign wealth fund (the world’s largest), Glass Lewis, Institutional Shareholder Services, and the California Public Employees’ Retirement System (CalPERS), all opposed the deal. Norway’s fund, for instance, held over 1 percent of Tesla as of June. Critics argued the package was excessive and raised concerns about corporate governance. Some feared it would give Musk too much voting power and tie Tesla’s fate too closely to one individual. Despite this, the board warned that Musk might leave the company if the vote didn’t pass—a risk they were unwilling to take. As the BBC noted, the board even launched a marketing blitz to rally support, with chair Robyn Denholm and director Kathleen Wilson-Thompson publicly praising Musk’s leadership.
The approval comes at a pivotal moment for Tesla. While the company’s shares have surged more than 62 percent in the past six months, Tesla faces mounting challenges. Sales have slid in the wake of Musk’s controversial public persona and his alignment with political figures like former President Donald Trump—a relationship that ultimately soured this past spring. Tesla shareholder Ross Gerber told BBC News that the pay deal marks “another notch in the unbelievable things that you see in business.” Yet, he also cited concerns over Musk’s polarizing image, saying it had “demolished the value of the brand.”
There’s also a strategic shift underway at Tesla. Musk’s vision for the company is increasingly focused on artificial intelligence and robotics, rather than just electric vehicles. He pledged to start production of a two-seater, steering-less robotaxi called the “Cybercab” in April 2026 and promised to unveil Tesla’s next-generation Roadster electric sports car. To support Tesla’s expanding ambitions in AI, Musk floated the idea of collaborating with Intel to acquire large-scale chip manufacturing capabilities. At the heart of this vision is Optimus, Tesla’s autonomous humanoid robot prototype unveiled in 2022. Designed to handle “unsafe, repetitive or boring tasks,” Optimus is, in Musk’s words, the beginning of “a whole new book” for Tesla.
Analysts are divided on this pivot. Gene Munster, managing partner at Deepwater Asset Management, commented on X, “Let it sink in where Musk’s head is at. His vision of the ‘new book’ starts with Optimus.” Some, like Wedbush Securities’ Dan Ives, see this as unlocking a new AI-driven valuation for Tesla. “We continue to believe that the AI valuation is getting unlocked, and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun,” Ives wrote. Others, including Gerber, remain skeptical, questioning whether there will be genuine demand for humanoid robots and pointing out stiff competition in the robotaxi sector from rivals like Waymo.
The Full Self-Driving feature, a cornerstone of Musk’s plan, is under scrutiny from U.S. regulators following incidents involving traffic violations and crashes. Musk told shareholders that Tesla was “almost comfortable” allowing drivers to “text and drive essentially,” but federal investigations continue, casting a shadow over the company’s bold autonomy claims.
The pay package also has legal and governance implications. A previous compensation agreement, worth tens of billions, was struck down by a Delaware judge who found Tesla’s board too close to Musk. In response, Tesla reincorporated in Texas, and the Delaware Supreme Court is now reviewing the lower court’s decision. The latest package, while resoundingly approved by shareholders, remains a lightning rod for debate about executive compensation, corporate control, and the future direction of one of the world’s most watched companies.
For now, Musk’s path is clear: deliver on some of the most ambitious goals ever set by a public company, or walk away with nothing. Supporters see this as aligning Musk’s incentives with shareholders’ long-term interests; critics view it as a risky bet on a single visionary. Either way, the world will be watching to see if Musk can turn Tesla’s “new book” into a reality—or if the story takes an unexpected turn.
