Prime Highlight
- Tesla shareholders have approved a compensation plan worth up to $1 trillion for CEO Elon Musk, potentially the largest corporate payout in history.
- The plan underscores strong investor confidence in Musk’s vision for robotics, AI, and Tesla’s long-term growth, despite recent challenges.
Key Facts
- Over 75% of shareholders voted in favor of the plan at Tesla’s annual meeting in Austin, Texas.
- Musk will receive the payout only if Tesla reaches a market capitalization of $8.5 trillion, about eight times its current value.
Background
Tesla shareholders approved a compensation plan on Thursday that could give CEO Elon Musk up to $1 trillion, marking what could become the largest corporate payout in history. The decision came at the company’s annual shareholder meeting in Austin, Texas, where over 75% of investors voted in favor of the plan.
As Musk walked onto the stage to cheers of “Elon,” he thanked shareholders and shared a lighthearted moment dancing with Tesla’s Optimus robots, calling them “the future of both the company and humanity.”
Under the new plan, Musk would be eligible for the massive payout only if Tesla reaches a market capitalization of $8.5 trillion, roughly eight times its current value. The deal is split into 12 performance-based milestones, requiring Musk to deliver millions of electric vehicles, humanoid robots, and robotaxis, while maintaining strong profits over the next decade.
If successful, Musk’s ownership stake in Tesla could rise to 25%, making him potentially the world’s first trillionaire.
The decision follows legal battles over Musk’s 2018 pay package worth $56 billion, which was twice rejected by a Delaware court. Following the rulings, Musk moved Tesla’s corporate base to Texas, where shareholders have now reapproved the plan.
Critics, including investor groups, argue the package gives too much control to Musk, despite recent drops in sales and growing safety concerns. Still, supporters believe the vote reflects confidence in Musk’s vision for robotics and artificial intelligence as Tesla’s next big frontier.
