Tesla Shareholders Approve Elon Musk's $1 Trillion Compensation Plan

Tesla shareholders have approved a compensation package for CEO Elon Musk that could be worth up to $1 trillion, contingent on the company meeting specific performance milestones over the next decade. The approval was announced during Tesla's 2025 Annual Shareholder Meeting on Thursday, with over 75% of participating shareholders voting in favor of the proposal.

The compensation plan is structured into 12 tranches, each tied to operational, adjusted profit, and market capitalization goals. For Musk to receive the full package, Tesla's market capitalization must increase from its current valuation of approximately $1.5 trillion to $8.5 trillion within the next ten years.

Tesla Chair Robyn Denholm emphasized the importance of Musk's leadership in achieving these ambitious targets, stating that his vision is vital to navigating this critical inflection point.

The approval comes despite opposition from some major investors. Norway's sovereign wealth fund, which holds a 1.12% stake in Tesla, announced plans to vote against the package, citing concerns over its size and potential shareholder dilution.

This compensation plan follows a previous $56 billion package approved in 2018, which was later voided by a Delaware court due to concerns over the negotiation process.

Musk expressed gratitude for the shareholders' support, stating, "I'd like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super appreciate it."

The newly approved package aims to align Musk's incentives with Tesla's long-term growth objectives, focusing on advancements in artificial intelligence, autonomous driving, and robotics.