$1 trillion for Musk. Tesla shareholders approve compensation package

Tesla shareholders voted in favor of a $1 trillion compensation package for CEO Elon Musk, Bloomberg reports.

On Thursday, during the annual meeting, shareholders voted in favor of Musk’s compensation package. More than 75% of votes supported the remuneration plan.

The decision was the result of a weeks-long campaign by Tesla’s board of directors, Musk himself, and retail investors who called for the deal to be approved.

The new package paves the way for Musk to increase his stake in Tesla to 25% or even more over the next decade.

To receive the full payment, he must achieve certain goals — growth in Tesla’s market value, recovery of electric vehicle sales, and the launch of autonomous transportation and Optimus robotics programs.

Bloomberg writes that the results of the vote were decisive for Tesla’s future, as Musk had previously hinted that he might leave the company or devote more time to his other businesses if the vote failed.

After approval, he will likely remain at the helm of the company.

Wedbush Securities analyst Dan Ives noted that even with this compensation package, Musk will have to overcome “significant hurdles.” First and foremost, these include scaling up production and profitably implementing robotics and robotaxi programs.

More details about Musk’s compensation package

The compensation plan, approved by the board of directors in September, provides for 12 tranches of shares that Musk will receive for achieving certain performance targets.

The first tranche will be activated after the market capitalization reaches $2 trillion (Tesla is currently valued at approximately $1.5 trillion), the others will be provided as the company’s market capitalization increases, and the last one will be activated when the capitalization reaches $8.5 trillion.

The package’s goals also include:

• 20 million Tesla electric vehicles delivered;

• 10 million active Full Self Driving subscriptions;

• 1 million Optimus robots;

• 1 million robotaxis in commercial operation.

Musk also insisted on expanding his voting rights in the company. He stated that he wanted to have “sufficient influence” to control the development of artificial intelligence and robot systems.

In late October 2025, Tesla board chair Robyn Denholm warned shareholders that Elon Musk could leave the company if they did not approve the proposed $1 trillion compensation package.

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