Tesla shareholders have voted to approve CEO Elon Musk’s compensation package, a deal that could be worth up to $1 trillion in company stock if all performance milestones are met. The approval followed an intense two-month campaign by Tesla’s leadership to rally investor support after a previous pay plan was invalidated in court.
More than 75% of participating shareholders backed the proposal — roughly matching the level of support Musk received for his 2018 pay plan, which was struck down by Delaware’s Chancery Court last year. The ruling found that Tesla had not been transparent in its negotiation process, prompting the company to appeal the decision.
The vote took place at Tesla’s factory in Austin, Texas, where Musk appeared on stage flanked by dancing Optimus robots. “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he told cheering shareholders, who began chanting his name after the results were announced.
Under the approved plan, Musk will receive no salary or cash bonus. Instead, his compensation is structured across 12 tranches tied to Tesla’s operational, profitability, and market capitalization goals. Each milestone unlocks additional shares for Musk. For instance, Tesla, currently valued at about $1.5 trillion, would need to reach $8.5 trillion within a decade for Musk to earn the full payout.
Some of the targets mirror earlier promises Musk has made about growth in autonomous technology, robotics, and AI-driven operations. The company’s board positioned the deal as a motivational framework for sustaining Tesla’s expansion into new sectors, including humanoid robotics and energy storage.
Chairwoman Robyn Denholm — typically reserved in public appearances — took a leading role in promoting the proposal, conducting multiple media interviews and addressing investors directly during the shareholder meeting. “Tesla is at an inflection point — I think I’ve said that 3,000 times over the last few weeks — and this last year has been a critical one in our history,” Denholm said, noting she had nearly lost her voice from the campaign.
Tesla also aired television advertisements urging shareholders to approve the package, a move unusual for the company, which rarely markets its products through paid media.
Musk urged shareholders to support the plan, arguing it would give him around 25% voting control over Tesla — up from his current 15% stake — which he described as necessary to prevent him from being pushed out of leadership. He has repeatedly said that without this level of control, he might step away from Tesla entirely, jeopardizing what he called the company’s efforts to build a “robot army.”
Tesla promoted its “Master Plan 4” as a key part of the case for Musk’s continued leadership. Released in September, the plan offered a broad, aspirational vision for Tesla’s future but few specific details — something Musk acknowledged at the time, promising more clarity “in a few days.” That update has yet to materialize.
Earlier this year, Tesla issued Musk $29 billion in shares to compensate for the voided 2018 package but said it would retract those shares if the court ultimately reinstates the earlier deal on appeal.
Featured image credits: Bret Hartman via Flickr
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