AUSTIN, United States — Tesla shareholders have approved an unprecedented pay package for chief executive Elon Musk, potentially worth nearly $1 trillion (Sh130 trillion), in a resounding vote of confidence that underscored both his influence and the company’s polarising leadership dynamics.
The deal, ratified by 75pc of shareholders at Tesla’s annual general meeting in Austin, Texas, on Thursday, makes it one of the largest compensation plans in corporate history.
It requires Musk to raise Tesla’s market value from its current $1.4 trillion to $8.5 trillion within ten years while meeting specific performance milestones, including rolling out a million self-driving Robotaxi vehicles.
“What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” Musk told cheering investors after the announcement, taking to the stage in typical flamboyant fashion and dancing to chants of his name. “
Other shareholder meetings are snoozefests, but ours are bangers. Look at this. This is sick,” he added.
The Tesla board had warned that without the pay deal, the billionaire could walk away from the company—an argument that appeared to sway many retail investors, who make up an unusually large proportion of Tesla’s shareholder base. Board chair Robyn Denholm described Musk as “indispensable” to the firm’s technological and market trajectory.
However, major institutional investors, including Norway’s sovereign wealth fund—the world’s largest—and the California Public Employees’ Retirement System (CalPERS), voted against the deal, citing concerns about corporate governance and excessive executive compensation.
Critics have long questioned Musk’s expanding ambitions, from humanoid robots and AI ventures to self-driving technology, arguing that these have distracted from Tesla’s core electric vehicle business.
“Let it sink in where Musk’s head is at,” analyst Gene Munster of Deepwater Asset Management wrote on X, noting Musk’s focus on the Optimus robot over cars and Robotaxi progress.
Musk briefly addressed the company’s full-self driving (FSD) programme, saying Tesla was “almost comfortable” allowing drivers to “text and drive essentially.” His comments come amid investigations by U.S. regulators into multiple Tesla crashes allegedly linked to FSD malfunctions.
Tesla’s stock has surged more than 60pc over the past six months, though sales have declined amid intensifying competition in the EV market and public backlash over Musk’s political ties, including a short-lived alliance with U.S. President Donald Trump earlier this year.
Ross Gerber, CEO of investment firm Gerber Kawasaki, called the pay package “another notch in the unbelievable things you see in business,” but cautioned that Musk’s “polarising persona” had “demolished the value of the brand.”
Analysts like Dan Ives of Wedbush Securities remain bullish, calling Musk “Tesla’s biggest asset” and predicting the start of “an AI-driven valuation wave” for the automaker.
The approval comes months after a Delaware judge struck down Musk’s previous multibillion-dollar compensation plan, citing conflicts of interest among Tesla board members. The company has since reincorporated in Texas, while the Delaware Supreme Court reviews the earlier ruling.
