Shareholders of Tesla, Inc. approved an unprecedented compensation package potentially worth $1 trillion over ten years for Chief Executive Elon Musk at the company’s annual meeting on Thursday, signalling investor confidence despite persistent governance concerns.
Musk must meet ambitious targets to unlock the prize — including raising Tesla’s market value from around $1.5 trillion to $8.5 trillion, delivering 20 million vehicles, launching 1 million robotaxis and rolling out 1 million humanoid robots.
Board Chair Robyn Denholm described the vote as an “inflection point” for Tesla, writing that rejecting the plan “would fail to foster an environment that motivates Elon to achieve great things.”
The path to Musk’s payout is divided into twelve “tranches”. Investors will only unlock shares as he and the company hit each successive milestone.
Still, the package has sparked strong opposition. The Norwegian Sovereign Wealth Fund — one of Tesla’s largest investors — announced it will vote against the deal, citing concerns over shareholder dilution and Musk’s widening control.
Critics also warn Tesla’s governance model is increasingly centered on one man. The Institutional Shareholder Services (ISS) advised investors to reject the deal, saying there was “no guarantee” Musk would remain focused on the company amidst his many other ventures.
Musk, who already holds about 16 % of Tesla’s shares and sits as its third-largest shareholder, will see his voting stake rise toward 25 % if all targets are met — a dramatic shift in influence.
