Tesla Shareholders Approve Elon Musk’s $1 Trillion Pay Package Amid AI and EV Ambitions:

In a landmark decision, Tesla shareholders have overwhelmingly approved a new pay package for CEO Elon Musk—a deal that could ultimately be worth up to $1 trillion, making it the largest compensation plan in corporate history. The vote took place Thursday at Tesla’s annual meeting in Austin, Texas, where more than 75% of investors backed the proposal. The plan, designed to ensure Musk remains at Tesla for at least the next seven and a half years, ties his earnings to a series of ambitious performance milestones. If achieved, the deal would increase Musk’s stake in Tesla from roughly 12% to more than 25%, strengthening his influence over the company’s future. Speaking after the vote, a visibly elated Musk thanked investors, saying, “I super-appreciate it.” The crowd responded with cheers of “Elon,” reflecting the strong loyalty many shareholders continue to show toward the billionaire entrepreneur. A Bet on AI and the Future of Mobility Tesla’s board defended the eye-popping package as essential to keeping Musk fully engaged with the company as it pursues breakthroughs in artificial intelligence, autonomous vehicles, and robotics. Chair Robyn Denholm told shareholders that losing Musk could trigger a steep drop in Tesla’s stock value, emphasizing that his leadership is crucial to the automaker’s next phase of growth. Musk has repeatedly said that he envisions Tesla becoming “the most valuable company in the world by far”—a goal he believes can be achieved if the company successfully scales self-driving technology and its upcoming robotaxi business. Controversy and Criticism Not everyone is celebrating. Activist groups and corporate governance experts have slammed the plan as excessive and risky. Tesla Takedown, an investor advocacy group, called the approval “a trillion-dollar reward for failure,” citing declining vehicle sales and safety concerns. Proxy advisory firms ISS and Glass Lewis also opposed the deal, arguing that Musk’s financial interests are already tightly linked to Tesla’s success. They warned that the sheer size of the package could give him too much power and lessen accountability. Despite these objections, Tesla’s loyal investor base once again rallied behind Musk, echoing a pattern from the 2018 pay deal that was later blocked by a Delaware court. After that ruling, Tesla’s board revised the compensation plan, first issuing an interim award worth around $29 billion, then crafting this far more ambitious trillion-dollar structure. The Road Ahead Under the new arrangement, Musk will only receive compensation if Tesla hits twelve specific milestones tied to market capitalization, profitability, and product goals. The first payout would occur when Tesla’s valuation reaches $2 trillion, up from roughly $1.5 trillion today. Other targets include delivering 20 million vehicles and expanding Tesla’s AI-powered product lineup. Analysts see the vote as a reaffirmation of Musk’s influence and Tesla’s potential. Wedbush’s Dan Ives described it as a “monumental show of faith” in Musk’s leadership as the company races to dominate the AI and autonomous-driving revolution. Still, critics say the vote highlights the widening gap between Tesla’s lofty ambitions and its current challenges, from slowing EV sales to rising competition in China. Whether Musk can meet the towering goals attached to this historic pay deal remains uncertain—but for now, investors have made one thing clear: they are betting on Elon Musk to deliver the future he’s promised.

NEWS