Tesla Shareholders Approve Elon Musk’s $1 Trillion Pay Package
Tesla shareholders have strongly endorsed a massive compensation plan for CEO Elon Musk, potentially worth up to $1 trillion in stock. More than 75% of voting investors supported the proposal, reflecting the consistent backing Musk has seen in earlier pay agreements.
The decision was revealed at Tesla’s Austin, Texas factory, where the announcement sparked chants of “Elon! Elon!” from attendees, as dancing Optimus robots shared the stage with the CEO.
“What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” Musk said on Thursday.
Under the approved deal, Musk won’t immediately receive $1 trillion. Instead, his potential earnings depend on Tesla achieving a series of long-term performance targets and profitability milestones. If successful, he could earn hundreds of billions of dollars and secure greater influence over the company’s direction.
Structure of the Compensation Plan
- The package consists of 12 tranches tied to operational, adjusted profit, and market capitalization goals.
- Each tranche unlocks a new portion of shares when the corresponding targets are met.
- Tesla currently holds a market capitalization of around $1.5 trillion.
- The company must increase that value to approximately $8.5 trillion within the next decade to fulfill the plan’s full potential.
While some of the outlined targets may prove challenging, others resemble earlier commitments Musk has made about Tesla’s growth and innovation over the years.
Author’s Summary
Tesla shareholders approved Elon Musk’s milestone-based $1 trillion compensation plan, showcasing investor confidence in his leadership and the company’s ambitious growth trajectory.