Tesla shareholders approve Elon Musk’s $1 trillion compensation package

A historic vote in Austin
At the annual meeting of Tesla, Inc. held in Austin, Texas, more than 75 % of shareholders backed a compensation plan for CEO Elon Musk that could award him up to US$1 trillion in stock over the next decade—contingent upon meeting ambitious performance targets. Reuters+1

The mechanics and milestones
The payout structure ties Musk’s reward to aggressive milestones including:

• Elevating Tesla’s market capitalisation to as much as US$8.5 trillion. Reuters+1
• Delivering roughly 20 million electric vehicles and launching 1 million robotaxis and humanoid robots. Reuters+1
• Musk only receives the full value of the award if all the performance metrics are achieved over the next 10 years. Without full attainment, the payout will be lower. AP News+1

Investor sentiment and governance concerns
Despite the strong approval, the plan drew notable opposition. Some major institutional investors, including the Norges Bank Investment Management (Norway’s sovereign wealth fund), publicly opposed the deal, citing concerns over governance, dilution and executive concentration of power. Reuters+1 On the other hand, supporters argue the package is essential to retain Musk and drive Tesla’s transition from automotive manufacturer to AI/robotics leader.

Implications for Tesla and beyond

• For Tesla, the vote signals robust faith from shareholders in Musk’s vision—but also places a huge burden of delivery. Failure to meet the targets could expose the company to reputational and operational risks.
• For corporate governance, this package raises questions around the limits of CEO compensation and landmark precedents in executive pay.
• For Musk, should all targets be met, he could become the world’s first trillionaire in personal net worth—an outcome laden with symbolic as well as financial significance. People.com

Outlook and key risks
Watch for:

• Whether Tesla can realistic­ly scale to the levels envisioned (e.g., robotaxi deployment, humanoid robots).
• How much of the plan remains theoretical versus actionable—and how markets and shareholders respond if milestones slip.
• The reaction of regulators, investor-rights groups and governance watchdogs to this level of compensation.
• The impact on Tesla’s share dilution and longer-term capital structure.

Newshub Finance Editorial in North America – 7 November 2025