Tesla Shareholders Approve Musk’s Trillion-Dollar Package/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Elon Musk secured shareholder approval for a historic $1 trillion pay package tied to Tesla’s future performance. Despite sharp criticism and Tesla’s recent struggles, over 75% of shareholders backed the plan. The vote positions Musk to potentially become the world’s first trillionaire — if bold targets are met.
Musk’s $1 Trillion Package Quick Looks
- Shareholders approved Musk’s performance-based compensation package.
- More than 75% of votes supported the plan at Tesla’s annual meeting.
- The package could make Musk the world’s first trillionaire.
- He must meet ambitious goals including 20 million EVs sold and a “robot army.”
- Tesla sales and market share are currently declining, especially in Europe.
- Critics say the board is too loyal to Musk; large investors opposed the deal.
- Musk says he seeks more control, not money, to manage Tesla’s AI future.
- The vote also allows Tesla to invest in Musk’s AI startup, xAI.
Tesla Shareholders Approve Musk’s Trillion-Dollar Package
Deep Look
In a move that could make Elon Musk the richest individual in human history, Tesla shareholders approved a performance-based compensation package potentially worth $1 trillion. The landmark vote, held Thursday during Tesla’s annual shareholder meeting in Austin, Texas, signals continued investor faith in Musk despite mounting concerns over his leadership and Tesla’s recent decline in sales and profits.
Over 75% of shareholder votes supported the deal, despite vocal opposition from influential pension funds, corporate governance experts, and some investors. For many, the vote reflected a high-stakes gamble: entrusting Musk with unprecedented wealth in exchange for ambitious business transformations that could catapult Tesla into new technological territory.
“Fantastic group of shareholders,” Musk declared after the tally was revealed. “Hang on to your Tesla stock.”
From Billionaire to Trillionaire?
The approved package is not a lump sum payment but a performance-based equity grant tied to long-term milestones. To unlock the full $1 trillion in stock compensation, Musk must meet a range of financial and operational targets. Chief among them: increasing Tesla’s market capitalization nearly sixfold, delivering 20 million electric vehicles over the next decade, and deploying one million humanoid robots — his so-called “robot army.”
Currently worth an estimated $493 billion, according to Forbes, Musk could surpass John D. Rockefeller’s inflation-adjusted peak wealth of $630 billion. Rockefeller, the Standard Oil tycoon, has long held the title of the wealthiest American in history.
While Musk’s fortune already places him atop global rich lists, this new package sets him on a path toward an unprecedented milestone — becoming the world’s first trillionaire, though only if he delivers on promises that many call far-fetched.
Tesla’s Struggles Add Pressure
The vote comes at a challenging time for Tesla. The company is battling sliding demand, eroding market share, and shrinking profits. A recent report showed Tesla’s European sales dropped sharply, including a 50% year-over-year decline in Germany — one of the company’s key markets.
Investor anxiety has grown as Musk increasingly engages in controversial political commentary, amplifies conspiracy theories, and juggles multiple ventures, including SpaceX, X (formerly Twitter), and his AI startup, xAI.
Nevertheless, many shareholders remain loyal, recalling Musk’s past turnarounds — including rescuing Tesla from near bankruptcy in its early years and turning it into a global EV powerhouse.
“He’s a visionary. He’s made the impossible possible before,” said financial analyst Dan Ives of Wedbush Securities. “This AI chapter needs one person to lead it, and that’s Musk.”
Controversy and Opposition
Not everyone agreed. Critics have labeled the package excessive and warned it reflects a failure of corporate governance. Among those voting against the plan were CalPERS — the nation’s largest public pension fund — and Norway’s sovereign wealth fund. Influential proxy advisory firms, including Institutional Shareholder Services (ISS) and Glass Lewis, also advised against the package, arguing Musk’s current behavior was erratic and the compensation unjustified.
“He has hundreds of billions of dollars already in the company,” said Sam Abuelsamid, an analyst with nearly two decades covering Tesla. “To say that he won’t stay without a trillion is ridiculous. It’s absurd that shareholders think he is worth this much.”
Musk’s response to his critics has been combative. At a recent investor meeting, he referred to shareholder advisory firms as “corporate terrorists.”
Still, the board of directors — widely seen as closely aligned with Musk — has maintained that the package is necessary to retain and motivate him as Tesla expands into robotics, AI, and fully autonomous vehicles.
AI, Robots, and Musk’s Vision
Musk has framed the package not as a quest for money but for influence. The deal will increase his stake in Tesla to nearly 30%, a move he argues is critical to ensure he retains enough control to guide Tesla’s next phase — a transition into an AI and robotics-focused company.
He has frequently referenced concerns about AI safety and the importance of leadership in controlling powerful technology.
“You have to trust the person controlling the robot army,” Musk said, suggesting that no one else is qualified to manage the potentially dangerous capabilities Tesla plans to develop.
Under Musk’s vision, Tesla aims to create and deploy humanoid robots capable of performing various labor-intensive tasks across homes, offices, and factories. These robots, alongside a self-driving vehicle fleet, are central to Musk’s claim that Tesla is becoming more than a car company — it’s evolving into a full-scale technology and AI platform.
Vote Implications and Shareholder Reactions
Tesla shares initially rose in after-hours trading following the vote, before settling back to close at $445.44 — largely unchanged. Still, the market reaction underscores the cautious optimism investors are showing as they bet on Musk’s ability to deliver transformational results.
Several other shareholder measures voted on during the meeting also favored Musk. Investors approved Tesla’s investment in his AI startup, xAI, giving him more leeway to integrate AI initiatives across companies. They also rejected a proposal to lower the ownership threshold required to sue Tesla, keeping the current 3% minimum in place — a win for the company and its current leadership structure.
What’s Next for Musk and Tesla
The vote now clears a legal and operational path for Musk to pursue the ambitious goals laid out in his pay package. If he can achieve even a portion of the benchmarks, it will cement his position as one of the most successful — and wealthiest — entrepreneurs in history.
Yet, significant challenges remain. The automotive market is growing more competitive with the rise of Chinese EV makers and legacy car brands catching up. Global economic uncertainty, regulation, and AI ethics will also test Musk’s vision.
Nevertheless, the message from shareholders is clear: they’re still willing to back Musk, even as risks mount.
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