Tesla shareholders approve Elon Musk’s $1 trillion pay plan

Tesla shareholders have approved CEO Elon Musk’s record-setting pay package, valued at nearly $1 trillion, with about 75% of voting shares in favor. The plan was recommended by Tesla’s board but opposed by major proxy advisors Glass Lewis and ISS. Results were announced during the company’s annual meeting in Austin, Texas.

An additional proposal by investor Stephen Hawk would allow Tesla to invest in Musk’s artificial intelligence startup, xAI. Tesla’s general counsel, Brandon Ehrhart, said the proposal received more votes in favor than against, though with many abstentions, and the company is considering its next steps.

Musk’s compensation includes 12 tranches of stock options linked to performance milestones over the next decade. If fully realized, his stake in Tesla would rise from 13% to about 25%, adding over 423 million shares. The first tranche is triggered if Tesla reaches a $2 trillion market capitalization, up from its current $1.54 trillion. Further tranches are tied to market value growth up to $8.5 trillion and a series of operational goals, including up to $400 billion in annual profit, 20 million vehicle deliveries, and deployment of 1 million robotaxis and Optimus humanoid robots.

At the meeting, Musk claimed Optimus robots could “eliminate poverty” and be “bigger than cell phones,” though none are commercially available yet.

The new plan follows a Delaware court ruling that voided Musk’s 2018 pay package as improperly approved. Musk has appealed that decision.

Despite concerns about Musk’s divisive political activity—which a recent study suggested may have hurt U.S. Tesla sales—the plan imposes no limits on his outside ventures or political engagement. Musk continues to lead multiple companies, including SpaceX, Neuralink, and xAI.