Elon Musk is poised to become the world’s first trillionaire after Tesla shareholders overwhelmingly voted for a record-breaking $1 trillion pay package for the electric car maker’s chief executive.
In the vote, which took place at Tesla’s annual shareholder meeting in Austin, Texas, investors chanted “Elon, Elon” as the results were announced – signaling their confidence in Musk’s leadership despite criticism from major institutional investors.
The deal, which could increase Musk’s stake in Tesla to 25 percent or more over the next decade, ties the world’s richest man’s rewards to ambitious performance targets that would see Tesla’s market value rise from $1.5 trillion to $8.5 trillion by 2035.
To unlock the full package, Musk needs to deliver 20 million vehicles annually, deploy a million robotaxis, sell a million humanoid robots and generate annual operating profits of up to $400 billion within the next decade.
“What we are beginning now is not just a new chapter in Tesla’s future, but a whole new book,” Musk told cheering shareholders, flanked by the company’s dancing robots. “It’s going to be a really exciting story.”
Musk, 54, is already the richest person in the world with an estimated net worth of $473 billion, according to the Bloomberg Billionaires Index. In addition to Tesla, he runs rocket manufacturer SpaceX and xAI, his artificial intelligence and social media company.
Tesla Chief Executive Robyn Denholm defended the pay plan, describing it as a necessary incentive to retain Musk and align his focus with the company’s long-term goals.
“Elon is an integral part of Tesla’s mission,” she said. “This compensation plan ensures he remains fully invested in delivering our next phase of growth.”
More than 75% of shareholders voted in favor of the deal, despite vocal opposition from several major investors, including Norway’s sovereign wealth fund, which called the payout “excessive.”
Some shareholder advisory groups also criticized the structure of the plan, arguing that Musk’s control of Tesla’s board raised questions about governance and proportionality.
The decision comes as Musk’s previous pay package, approved in 2018, continues to face legal scrutiny in Delaware’s Chancery Court, where a judge ruled earlier this year that the plan was unfair to shareholders. Tesla has now filed an appeal.
Tesla shares fell 3.5% to $445.91 after the meeting, valuing the company at about $1.5 trillion. Analysts said the moderate decline was more a result of uncertainty about the viability of Musk’s goals than an investor revolt.
Proponents argue that if Musk achieves his goals, both shareholders and Tesla’s strategic position in the global automotive and robotics markets would change.
“The targets are certainly ambitious,” said a senior analyst at Wedbush Securities. “But if even half is achieved, Tesla’s investors will be richly rewarded, and Musk will have redefined the possibilities of corporate governance and wealth creation.”
With Musk now firmly focused on robotaxis, robotics and artificial intelligence, Tesla’s next chapter is likely to take the company – and its founder – into uncharted territory, both technologically and financially.
