Elon Musk’s $1 Trillion Pay Deal Approved By Shareholders
Elon Musk is on track to become the world’s first trillionaire after Tesla shareholders overwhelmingly approved a record-breaking pay deal worth up to $1 trillion. More than 75% of investors voted in favor of the package at Tesla’s annual meeting in Austin, Texas, where Musk took the stage to loud cheers.
“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 the crowd. Wearing a black Tesla jacket, Musk declared that this new “book” would be about scaling up vehicle production and ramping up the production of the company’s humanoid robot, Optimus, “faster than anything’s ever been ramped up before in human history.”
Under the deal, Musk won’t earn a salary. Instead, he’ll receive stock awards if Tesla hits tough milestones—like reaching a market value of $8.5 trillion (up from about $1.4 trillion now), delivering 20 million vehicles, building a million robotaxis, and selling one million Optimus robots.
The company’s board pitched the plan as essential to keeping Musk motivated and tied to Tesla’s long-term success. Board chair Robyn Denholm said it was meant “to supercharge Tesla’s next phase of exceptional growth, innovation and value creation.”
But not everyone is celebrating. Critics have slammed the massive payout as excessive, calling it “pay for unchecked power, not pay for performance,” in the words of New York State Comptroller Thomas DiNapoli. Vermont Senator Bernie Sanders called it “totally absurd,” arguing that ordinary Americans are struggling while “one guy who already owns more wealth than the bottom 52% of American households” gets even richer.
Still, Tesla’s retail investors—who make up an unusually large share of its ownership—rallied behind Musk, many saying they trust his long-term vision. Cathie Wood of Ark Invest wrote on X, “I do not understand why investors are voting against Elon’s pay package when they and their clients would benefit enormously if he and his incredible team meet such high goals.”
The plan wasn’t without opposition from big institutions. Norway’s sovereign wealth fund and California’s public pension system voted against it, citing its size and the risks of giving Musk even more control. If all goals are met, his stake in Tesla could rise to roughly 25%, giving him greater influence over the company’s direction.
The approval caps off a heated few months for Tesla. Musk’s prior $128 billion pay deal was thrown out by a Delaware judge last year, prompting the company to move its legal base to Texas. The new plan, which mirrors the earlier one but on an even larger scale, now faces scrutiny as analysts question whether Musk can actually deliver on his lofty promises.
Beyond the boardroom, Musk’s politics and persona continue to divide opinion. His ties to Donald Trump and polarizing online presence have alienated some buyers and investors. Yet his supporters argue that his ambition and risk-taking have built Tesla into a global leader in electric vehicles and AI.
Musk also hinted at a future where Optimus robots could help solve poverty, saying, “People often talk about eliminating poverty, giving everyone amazing medical care. Well, there’s actually only one way to do that, and that’s with the Optimus robot.”
Tesla’s stock dipped slightly after the vote but remains up over 60% in the past six months. Analysts like Dan Ives of Wedbush Securities called Musk “Tesla’s biggest asset,” adding that the company is entering “the most important chapter in Tesla’s history with an autonomous future ahead.”
As Musk danced onstage to chants of his name, the split was clear: for some, he’s a visionary rewriting the future; for others, he’s the face of an economy tilting further toward extreme inequality. Either way, what Tesla’s shareholders approved isn’t just another pay plan—it’s a bet on Musk’s ability to turn science fiction into profit.
