Tesla Shareholders Approve Musk's $1 Trillion Compensation Package

Tesla shareholders have approved a compensation package for CEO Elon Musk that could be worth up to $1 trillion over the next decade. The plan ties Musk's earnings to ambitious performance targets, including increasing Tesla's market valuation from its current $1.1 trillion to $8.5 trillion by 2035.

The package, awarded in 12 tranches, requires Musk to achieve specific milestones, such as delivering Tesla's 20 millionth vehicle and launching one million self-driving robotaxis. Each tranche unlocks additional stock options, aligning Musk's incentives with the company's long-term growth objectives.

Tesla Chair Robyn Denholm emphasized the importance of Musk's leadership, stating that his "singular vision is vital to navigating this critical inflection point."

The approval comes despite opposition from some major investors. Norway's sovereign wealth fund, holding 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 $55 billion package awarded to Musk in 2018, which was invalidated by a Delaware court last year. The court found that Tesla's board lacked sufficient independence from Musk during the negotiation process.

Musk's new compensation plan underscores Tesla's commitment to retaining its CEO as the company shifts its focus toward artificial intelligence and robotics. Musk outlined a product roadmap that includes the Optimus humanoid robot and the Cybercab autonomous vehicle, aiming to redefine Tesla's mission toward achieving "sustainable abundance."