US: Tesla chief Elon Musk has secured a record-breaking pay package that could be worth nearly $1 trillion after shareholders overwhelmingly backed the proposal at the company’s annual general meeting in Austin, Texas.
The deal, approved by around 75 percent of votes, drew loud cheers as Musk took the stage, dancing to chants of his name. The package ties Musk’s rewards to Tesla’s long-term performance over the next decade.
To unlock the full payout, he must drive the company’s market value from about $1.4 trillion today to $8.5 trillion, alongside meeting ambitious operational goals such as launching a million self-driving Robotaxi vehicles.
Despite criticism over the staggering sum, Tesla’s board argued that Musk’s leadership is irreplaceable and that failing to approve the deal might risk losing him.
However, the announcement reignited debate about Musk’s focus and priorities. Analysts noted his opening remarks centered on Optimus, Tesla’s humanoid robot project, rather than its core electric vehicle business.
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Gene Munster of Deepwater Asset Management remarked that Musk’s attention on Optimus showed “where his head is at,” noting the lack of early mention of Tesla’s car and robotaxi plans. Later in the meeting, Musk did touch on full self-driving technology, saying the company was close to allowing drivers to safely text while on the road. The system remains under federal investigation following several crashes linked to the software.
Tesla’s stock has surged more than 60 percent in the past six months, but sales have weakened amid growing competition and Musk’s increasingly polarizing public image.
Norway’s sovereign wealth fund and California’s giant public pension fund, CalPERS, both voted against the plan, citing concerns over governance and concentration of power. But Tesla’s large base of retail investors helped swing the decision in Musk’s favor.
The approval also follows a legal setback earlier this year, when a Delaware judge struck down Musk’s previous multibillion-dollar pay package, ruling that Tesla’s board was too close to him. Tesla has since moved its corporate registration to Texas, while the Delaware Supreme Court reviews that decision.
