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In a landmark corporate decision that has already sent shockwaves through the
tech and automotive worlds, Tesla shareholders have approved a record-breaking
$1 trillion compensation package for CEO Elon Musk. This historic payout—if fully
achieved—would be the largest in corporate history, eclipsing the GDP of entire
nations and redefining what executive compensation looks like in the age of
artificial intelligence and robotics.
The vote, announced at Tesla’s annual shareholder meeting in Austin, Texas,
secured over 75% approval, demonstrating strong belief among investors in Musk’s
long-term vision. But the decision has also ignited fierce controversy, raising
questions about corporate governance, executive power, and the future direction
of Tesla.
This in-depth analysis explores the details of the $1tn pay package, the ambitious
milestones Musk must meet, the backlash from institutional investors, and what
This move means for Tesla’s future in EVs, AI, and robotics.
A Historic Vote: Shareholders Back Musk With Overwhelming
Support
The shareholder meeting was anything but ordinary. As soon as the results were
announced, the room erupted into cheers and chants of “Elon! Elon!”, reflecting the
cult-like support Musk maintains among Tesla’s large base of retail investors.
Musk’s reaction was equally memorable: dancing onstage alongside Tesla’s
humanoid Optimus robots before thanking shareholders.
The approval represents a major victory for Musk after years of legal challenges
that previously caused a 2018 pay package worth $56 billion to be rejected twice
by Delaware’s Court of Chancery. Following those rulings, Musk moved Tesla’s
corporate headquarters from Delaware to Texas, where the new plan was voted on.
What Musk Must Achieve to Earn the $1 Trillion
This enormous pay package is not guaranteed. It is tied to one of the most
aggressive corporate performance plans in history, broken into 12 financial and
operational milestones. To receive the full amount, Musk must:
1. Raise Tesla’s Market Cap to $8.5 Trillion
Current value: ~$1.4 trillion.
Required growth: Over 8x increase.
If achieved, Tesla would become the most valuable company in the world by far,
surpassing Apple, Microsoft, and even entire national economies.
2. Deploy 1 Million Robotaxis
Tesla must bring fully autonomous robotaxi fleets into commercial operation—a
technological and regulatory challenge that continues to face scrutiny.
3. Sell 20 Million Electric Vehicles
This would require Tesla to outsell all major auto manufacturers combined.
4. Deploy 10 Million Full Self-Driving (FSD) Subscriptions
The company must drastically improve FSD reliability while addressing ongoing
safety investigations.
5. Produce and Sell 1 Million Humanoid Robots
The Optimus robot is a core part of Musk’s vision for Tesla’s future, even
overshadowing EV discussions during the shareholder meeting.
6. Reach $400 Billion in Annual Earnings
Tesla must deliver four consecutive quarters to achieve this target.
Current quarterly earnings: $4.2 billion.
Required increase: Almost 100x.
These expectations illustrate why the package is considered both visionary and
extraordinarily risky.
Why Shareholders Support the Plan
Tesla’s board argued that the company cannot afford to lose Musk. They described
him as the driving force behind Tesla’s:
EV innovation
AI breakthroughs
Robotics development
Autonomous driving technology
Long-term vision of becoming an AI-first company
Some analysts agree. Wedbush Securities’ Dan Ives called Musk “Tesla’s biggest
asset” and suggested that the package could unlock a new era of AI-driven
valuation for the company.
Many retail investors believe Musk is the only leader capable of pushing Tesla into
its next technological chapter, particularly in AI and robotics.
Growing Criticism and Investor Backlash
Despite overwhelming support from retail investors, major institutional investors
strongly opposed the package.
Norway’s Sovereign Wealth Fund
The world’s largest national wealth fund rejected the plan, citing:
Excessive size of the award
Lack of protection against “key person risk”
Concerns over shareholder dilution
California Public Employees’ Retirement System (CalPERS)
Also voted against the plan, adding pressure to Tesla’s board.
Shareholder Advisory Firms
ISS and Glass Lewis both advised shareholders to vote “no,” saying:
The plan provides “extraordinary pay levels without extraordinary performance.”
It centralizes too much power in one individual.
It exposes Tesla to corporate governance weaknesses.
Musk fired back, calling these firms “corporate terrorists”, arguing that their
influence threatens Tesla’s future direction.
Critics Claim Musk Has Been Rewarded Despite Tesla’s
Struggles
Opponents argue that Musk is being rewarded during a period of:
Falling EV sales
Growing safety concerns about FSD
Distracted leadership due to his commitments at SpaceX, xAI, and X (formerly
Twitter)
Polarizing political behavior impacting brand perception
A Tesla protest group said:
“Elon Musk just got $1tn for failure… This is the world’s most expensive
participation trophy.”
Others fear the plan empowers Musk to act without accountability.
The Court Battles That Led to This Moment
The fight over executive compensation began years earlier.
The 2018 Package
Originally worth ~$56 billion.
Challenged by a single shareholder.
Delaware courts ruled the board was too close to Musk and failed to act
independently.
Tesla’s Corporate Move to Texas
After repeated defeats in Delaware, Musk shifted Tesla’s legal home to Texas—
along with SpaceX and other companies.
Delaware Supreme Court Review
The rejected 2018 package is still under appeal.
This history set the stage for the new $1tn package, which many see as Musk’s
attempt to secure long-term control.
Robotics Takes Center Stage: Musk’s Vision for Tesla’s Future
During the meeting, Musk shifted focus away from EVs toward Tesla’s growing
identity as a robotics and AI company.
The Optimus robot—still not in mass production—was presented as:
The future of Tesla
A transformational product for humanity
A robotics platform with uses in homes, hospitals, and even prisons
Musk joked:
“You now get a free Optimus that follows you around and stops you from doing
crime.”
While the remark was humorous, it reflected Musk’s real ambition for Tesla to
become a leader in humanoid robots, not just cars.
However, analysts were divided. Some praised the innovation, while others said
Musk’s focus on robots raises concerns about neglecting Tesla’s core EV business.
Is Musk on Track to Become the World’s First Trillionaire?
If Musk completes the plan’s milestones, his personal wealth could exceed $1
trillion, making him the richest individual in human history.
As of November 2025, Musk’s net worth was $460 billion, already the highest in the
world.
Tesla’s Stock Performance After the Vote
Shares rose slightly in after-hours trading following the approval but have gained
over 62% in six months, driven by:
AI optimism
Anticipation of a robotaxi launch
Increased confidence in Musk’s leadership
Tesla’s future valuation now hinges on AI and robotics far more than EVs.
What’s Next for Tesla?
The approval signals a decisive shift in Tesla’s identity:
From an electric vehicle manufacturer
To an AI, robotics, and autonomous mobility powerhouse
Musk emphasizes that Optimus and autonomous technologies will define Tesla’s
Next decade, more than its vehicle lineup.
But the company must also confront:
Tightening EV competition
Regulatory pressure
Technical hurdles in FSD
Manufacturing challenges
And perhaps most importantly:
Can Elon Musk actually deliver an $8.5 trillion company?
Tesla shareholders have made a bold bet—one that could redefine not only the
The company’s future, but the future of executive compensation.
If Musk meets the aggressive milestones, Tesla may become the world’s most
valuable company, pioneering breakthroughs in robotics and artificial intelligence
. If he fails, the plan may be remembered as the most overvalued compensation
package in corporate history.
What is certain is that Tesla’s future is now deeply intertwined with Musk’s vision—
ambitious, risky, unconventional, and unapologetically futuristic.
