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

Shareholders of American electric vehicle maker Tesla have approved a massive pay package for Chief Executive Officer Elon Musk that could potentially make him the world’s first trillionaire if the company meets its ambitious growth targets, CNN reported.

At Tesla's annual shareholder meeting on Thursday, more than 75 per cent of shareholders voted in favour of Musk's stock-based compensation plan, excluding the 15 per cent stake he already owns. The hall erupted in applause and excitement when the results were announced.

“I am deeply grateful for this support,” Musk said, thanking Tesla shareholders and the board of directors after the vote, as reported by CNN.

Unlike most CEOs, Musk does not take a salary. His compensation comes entirely through stock options, and this new package could grant him up to 423.7 million Tesla shares over the next decade, a potential payout worth around USD1 trillion if the company hits a market value of USD 8.5 trillion. 

That target would require Tesla's stock price to rise by 466 per cent from its current level, a feat that would make it more valuable than Nvidia, currently the world's largest company at USD 5 trillion.

If Musk secures all 12 tranches of the stock award, the earnings would equal USD 275 million per day, the largest executive pay deal ever recorded.

Tesla's board had warned shareholders that rejecting the pay plan could prompt Musk to walk away from the company. In a regulatory filing, the board said Musk had raised concerns about continuing as CEO without greater assurances of control that the pay package could grant him.

Despite the approval, Tesla is facing a challenging year. The company's sales and profits have dropped sharply in 2025 amid slower EV demand and reduced US government incentives for electric vehicles, CNN reported. 

Musk’s current net worth is estimated at USD 473 billion, according to Bloomberg’s Billionaire Index, primarily driven by his holdings in Tesla, SpaceX, and his artificial intelligence startup xAI.

ANI/RSS