Austin, Texas — Tesla shareholders have officially approved a historic pay package for CEO Elon Musk that could reach nearly $1 trillion, marking one of the largest compensation deals in corporate history.
During the company’s annual general meeting on Thursday, roughly 75% of shareholders voted in favor of the record-breaking plan. The approval drew thunderous applause as Musk took to the stage, celebrating the moment with an impromptu dance amid chants of his name.
“What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” Musk told the audience at Tesla’s Austin headquarters. “Other shareholder meetings are snoozefests, but ours are bangers. Look at this — this is sick.”
Inside Musk’s Record Pay Package
Under the deal, Musk will receive no salary — instead, his compensation will depend entirely on achieving several massive performance goals over the next decade.
To unlock the full value of the package, Musk must meet ambitious targets, including:
- Producing 20 million Tesla vehicles and 1 million humanoid robots
- Reaching 10 million subscriptions for Tesla’s Full Self-Driving (FSD) service
- Launching 1 million self-driving robotaxi vehicles into commercial use
- Earning up to $400 billion in core profit
- Raising Tesla’s total market value from $1.4 trillion to $8.5 trillion
If all these milestones are met, Musk will receive over 400 million new Tesla shares, potentially worth around $1 trillion.
Tesla’s board defended the decision, saying Musk could leave the company if the plan was rejected — a risk they were not willing to take.
Spotlight Shifts to the Optimus Robot
Much of Musk’s presentation focused not on cars, but on Tesla’s humanoid robot, Optimus — a prototype first unveiled in 2022. Designed to handle “unsafe, repetitive, or boring tasks,” Optimus uses the same AI technology that powers Tesla vehicles.
Musk has called the robot essential to Tesla’s future, envisioning it working in factories and, eventually, homes.
“Let it sink in where Musk’s head is at,” wrote analyst Gene Munster of Deepwater Asset Management on X. “His vision of the ‘new book’ starts with Optimus — no mention of cars or robotaxi yet.”
Read Also: How Much Money Does Elon Musk Make a Second?
Musk Addresses Self-Driving Tech and Regulation
Musk also addressed Tesla’s Full Self-Driving (FSD) software, claiming the company is “almost comfortable” letting drivers “text and drive essentially.”
However, U.S. regulators continue to investigate the technology after several reported incidents where Tesla vehicles allegedly ran red lights or drove on the wrong side of the road, causing crashes.
Despite the scrutiny, Tesla shares rose slightly after the meeting and have climbed over 60% in the past six months.
Investor Reaction: Divided but Hopeful
Reactions among shareholders were mixed.
Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, told the BBC the deal was “another notch in the unbelievable things you see in business.”
While acknowledging Musk’s brilliance, Gerber expressed concern over Tesla’s challenges, including declining sales and the CEO’s polarizing public image.
“Elon seems to be divorced from the reality that his opinion among the public is so low,” he said.
Wedbush Securities analyst Dan Ives, however, praised the decision, calling Musk “Tesla’s biggest asset.”
“We continue to believe the AI valuation is being unlocked,” Ives noted, predicting that Tesla’s next growth phase will center on AI and robotics.
Tesla’s Road Ahead
Although Tesla remains a leader in electric vehicles, competition from companies like Waymo and other EV manufacturers is intensifying. Musk’s renewed focus on AI, robotics, and automation signals a shift in Tesla’s long-term strategy — one that could redefine not only the company but the future of technology itself.
As Musk put it: “The next chapter for Tesla isn’t just about cars — it’s about the future of intelligence, automation, and what it means to be human.”
Source: BBC.com
