Austin| November 7, 2025| Sky Link Times |
In a historic move, Tesla Inc. shareholders on Thursday approved a record $1 trillion compensation package for CEO Elon Musk, marking the largest payout ever granted to a corporate leader.
The package, designed to secure Musk’s long-term commitment as Tesla expands its frontiers in artificial intelligence and robotics, won more than 75 percent shareholder approval at the company’s annual meeting held in Austin, Texas.
A visibly elated Musk addressed the gathering, saying,
”I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super-appreciate it.”
The announcement was met with loud cheers of “Elon! Elon!” as investors celebrated the outcome.
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The $1 Trillion Vision
The new compensation plan ensures that Musk remains at Tesla for at least seven and a half years. If fully realized, it could raise his stake in the electric vehicle giant from 12 percent to over 25 percent.
The package ties Musk’s payout to achieving 12 market capitalization milestones — beginning with Tesla reaching a $2 trillion valuation (up from its current $1.5 trillion) — along with profitability and production targets, such as delivering 20 million vehicles globally.
Tesla Chairman Robin Denholm defended the proposal, stating that retaining Musk is vital for the company’s success and warning that Tesla’s stock could “dive” without him at the helm.
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Mixed Reaction Among Shareholders
While the majority of Tesla investors backed Musk, not everyone was pleased. Activist group Tesla Takedown criticized the move, arguing that the company’s recent dip in auto sales should have warranted restraint.
> “Elon Musk just got one trillion dollars for failure,” the group said in a statement. “Sales are down, safety risks are up, and his politics are driving customers away. This isn’t leadership — it’s the world’s most expensive participation trophy.”
In contrast, Wedbush analyst Dan Ives praised the decision, calling it a “vote of confidence in Tesla’s AI-driven future,” and saying it “cements Musk’s leadership as the AI revolution accelerates.”
Legal and Governance Scrutiny
This is not the first time Musk’s compensation has stirred controversy. His 2018 pay deal, worth about $55.8 billion, was blocked by a Delaware court after shareholder lawsuits questioned its fairness.
Following the ruling, Tesla’s board introduced an interim $29 billion award before revising and approving the current $1 trillion plan, which shareholders reaffirmed on Thursday.
Proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) both opposed the proposal, arguing that Musk’s existing wealth and control already aligned his interests with Tesla’s. ISS further warned that the “unprecedented” structure “could undermine performance discipline” and lacks clear requirements ensuring Musk’s focus remains on Tesla amid his multiple ventures.
World’s Richest Man Gets Richer
With an estimated net worth exceeding $500 billion, Elon Musk remains the world’s richest person, according to Forbes.
The new compensation deal could further solidify his fortune — and his influence — as Tesla aims to dominate the next frontier of autonomous driving, AI, and robotics.
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