Elon Musk Wins Shareholder Approval for $1 Trillion Tesla Pay Plan

AUSTIN, Texas — Tesla shareholders have approved Elon Musk’s record-breaking compensation plan, a package that could reach nearly $1 trillion in stock awards if the automaker hits a series of steep performance targets. The vote represents one of the largest pay approvals in corporate history and reaffirms investor confidence in Musk’s leadership as Tesla seeks to evolve beyond electric vehicles.

More than 75% of shareholders backed the proposal during the company’s annual meeting at its Texas Gigafactory. Musk took the stage to celebrate the outcome, joined by Tesla’s humanoid robots, and outlined his next steps to turn Tesla into a global force in artificial intelligence and automation.

Shareholders Approve Record Pay Plan

The compensation package ties Musk’s earnings entirely to Tesla’s long-term growth. To unlock the full payout, Tesla must achieve a market capitalization of $8.5 trillion, up from about $1.5 trillion currently.

Along the way, the company must meet operational goals such as producing 20 million vehicles annually, deploying 1 million robotaxis, and selling 1 million humanoid robots. Each milestone grants Musk 1% of Tesla’s stock, creating direct alignment between the CEO’s rewards and shareholder returns.

The adjusted value of the package — about $878 billion — reflects performance-based thresholds and stock price variations over time.

Musk Outlines New Projects and Expansion Plans

Following the vote, Musk announced several upcoming Tesla projects. He said the company expects to begin production of the Cybercab, a steering-free, fully autonomous taxi, next year. Tesla will also unveil its long-delayed next-generation Roadster, a high-performance electric sports car.

Musk added that Tesla may need to build its own AI chip fabrication plant to support its self-driving systems and robotics programs, possibly in collaboration with Intel.

“Tesla is no longer just a car company,” Musk said. “We’re building the infrastructure for an automated future.”

Institutional Investors Split on the Decision

The vote revealed a sharp divide among investors. While retail shareholders overwhelmingly supported the package, several major institutions — including Norway’s sovereign wealth fund — and proxy advisory firms ISS and Glass Lewis voted against it.

Critics called the package “excessive” and raised concerns about corporate governance, saying the plan gives Musk too much influence over the board.

Tesla’s directors defended the deal, arguing it ensures Musk’s focus remains on Tesla rather than his other ventures, such as SpaceX, xAI, and The Boring Company.

“The structure is designed to reward performance, not promises,” the board said in a statement.

Additional Votes Reinforce Board Oversight

At the same meeting, shareholders re-elected three Tesla board members and approved a move to hold annual elections for all directors — a shift toward greater transparency and accountability.

Investors also voted to allow Tesla to invest in xAI, Musk’s artificial intelligence startup. However, a high number of abstentions signaled unease about the overlap between Musk’s companies.

“Investors will expect the board to enforce strict guardrails around potential conflicts of interest,” said Jessica McDougall, a governance expert at Longacre Square Advisors.

Investors Back Musk but Expect Real Progress

The vote gives Musk the approval he wanted but also sets a higher bar for results. Analysts say shareholders are looking for evidence that Tesla can turn ambitious plans into measurable performance.

“Elon has secured investor confidence once more, but now he must deliver on production, profitability, and new product rollouts,” said Daniel Ives, senior analyst at Wedbush Securities.

Tesla is facing sharper competition, especially from BYD in China and Rivian and Lucid Motors in the U.S. Analysts say maintaining Tesla’s high valuation will depend on clear progress in scaling its software, robotaxi, and robotics businesses.

Tesla Faces Pressure to Deliver on Musk’s Promises

The approval locks Musk in as Tesla’s central figure, but it also raises the pressure to deliver results that match the hype. Investors now expect tangible progress on the company’s key promises — fully autonomous vehicles, a commercial robotaxi network, and humanoid robots ready for production.

Tesla’s stock has soared on Musk’s future-facing vision, yet much of that value depends on breakthroughs that remain unproven. Analysts say the coming year will test whether Tesla can scale these technologies beyond prototypes and into real revenue.

“Musk has secured the faith of his investors,” said Brian Mulberry of Zacks Investment Management. “Now the market will demand proof that Tesla’s ambitions can translate into execution.”

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