Elon Musk’s $1 Trillion Tesla Pay Plan Approved by Shareholders

Post by : Sameer Saifi

In a historic move, Tesla CEO Elon Musk won approval from shareholders for the largest corporate pay plan ever. On Thursday, more than 75% of Tesla’s investors voted in favor of the plan. Musk, already the world’s richest person, could earn up to $1 trillion in Tesla stock over the next decade if he meets a series of very ambitious goals.

The approval came at Tesla’s annual meeting in Austin, Texas. Musk appeared on stage with dancing robots, making the meeting lively and exciting. He said this was not just a new chapter for Tesla but a whole new book for the future of the company.

Musk’s pay is tied to Tesla achieving major goals. These include producing 20 million cars per year, launching 1 million robotaxis in the U.S. that drive themselves, selling 1 million humanoid robots, and earning up to $400 billion in core profit. To earn his pay, Tesla’s stock must also rise from $1.5 trillion to $8.5 trillion over the next ten years. Each milestone Musk achieves earns him 1% of Tesla stock. Even if he does not meet all the goals, Musk could still earn tens of billions of dollars.

Some investors worried the plan was too expensive. Others opposed it, including Norway’s sovereign wealth fund and major advisory firms. But many shareholders believe the plan will help keep Musk at Tesla and push the company to grow faster. Tesla’s board said Musk might leave the company if he did not get the pay plan. By approving it, investors are betting on his vision for the future, including Tesla leading in artificial intelligence, making new robots, and creating innovative electric vehicles like the Cybercab robotaxi and the next-generation Roadster.

Musk was allowed to vote his own 15% stake after Tesla moved its headquarters from Delaware to Texas. This helped secure the approval. Without his vote, the plan might have needed more scrutiny. Shareholders also voted to reelect three Tesla board directors, approve annual elections for all board members, and support investment in Musk’s AI startup, xAI, though some investors abstained due to concerns about mixing business goals.

Tesla’s future depends heavily on Musk’s ambitious plans. While some worry about dilution of shares and Musk’s political statements affecting the brand, others believe these goals will drive growth and benefit shareholders over time. Brian Mulberry from Zacks Investment Management said the milestones in Musk’s pay plan follow improvements in Tesla’s revenue growth. “The plan ensures that Musk works hard to grow Tesla, and shareholders benefit if he succeeds,” he explained.

If Musk meets all targets, he could earn 12% in Tesla stock, worth about $1 trillion. The net value is around $878 billion after adjustments for the stock’s current price. The pay plan is flexible and changes with Tesla’s stock value, giving Musk strong incentives to achieve extraordinary results. Tesla is not just a car company anymore. Under Musk’s leadership, it aims to become a global leader in AI, robotics, and futuristic transportation. This historic pay plan shows investors are placing their faith in Musk’s vision for a high-tech future.

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