Elon Musk has been granted a record-breaking $1 trillion pay package at Tesla, following approval from 75% of shareholders during the company’s annual general meeting held Thursday in Austin, Texas.
The package, consisting entirely of stock-based rewards rather than direct cash, makes Musk the recipient of the largest compensation plan in corporate history.
Tesla’s board stated that the deal is “essential to ensure Musk remains at the helm of the company” and to drive its long-term growth over the next decade.
Package Conditions
According to the agreement, Musk will unlock tranches of new Tesla shares only if he meets several ambitious targets, including:
increasing Tesla’s market valuation from $1.4 trillion to $8.5 trillion,
launching around one million Robotaxi vehicles,
advancing the development of the Optimus humanoid robot,
and expanding Tesla’s global energy and AI technologies.
If all goals are met within the next 10 years, Musk could become the first person in history to earn $1 trillion from a single company.
Mixed Reactions
The record-setting pay deal has sparked both praise and criticism.
Some investors have called it “excessive and risky,” warning that it could affect Tesla’s stock value.
However, the majority of shareholders supported the decision, emphasizing that Tesla’s success is inseparable from Musk’s leadership.
After the vote, Musk took the stage in front of hundreds of cheering shareholders, declaring:
“We’re ready to begin not just a new chapter for Tesla, but a new book. This company has only just begun.”
A New Era for Tesla
The decision comes at a pivotal time for Tesla as it prepares for the next phase of expansion, focusing on artificial intelligence, self-driving technologies, and robotics.
The announcement has already boosted investor confidence worldwide, with analysts suggesting the move could strengthen Tesla’s position as a global leader in electric vehicle innovation.
