Tesla shareholders voted Thursday to approve an enormous compensation package that could make Elon Musk the worldâs first trillionaire.
At Teslaâs Austin headquarters, investors backed Muskâs 12-step plan that ties his potential trillion-dollar payout to a series of aggressive financial and operational milestones, including raising the companyâs valuation from roughly $1.4 trillion to $8.5 trillion and selling one million humanoid robots within a decade. Musk hailed the outcome as a turning point for Teslaâs future.
âWhat weâre about to embark upon is not merely a new chapter of the future of Tesla but a whole new book,â Musk said, as The New York Times reported.
The decision cements investor confidence in Muskâs âmoonshotâ management style and reinforces the belief that Teslaâs success depends heavily on its founder and his leadership.
âThose who claim the plan is âtoo largeâ ignore the scale of ambition that has historically defined Teslaâs trajectory,â the Florida State Board of Administration said in a securities filing describing why it voted for Mr. Muskâs pay plan. âA company that went from near bankruptcy to global leadership in E.V.s and clean energy under similar frameworks has earned the right to use incentive models that reward moonshot performance.â
Investors like Ark Invest CEO Cathie Wood defended Teslaâs decision, saying the plan aligns shareholder rewards with company performance.
âI do not understand why investors are voting against Elonâs pay package when they and their clients would benefit enormously if he and his incredible team meet such high goals,â Wood wrote on X.
Norwayâs sovereign wealth fund, Norges Bank Investment Management â one of Teslaâs largest shareholders â broke ranks, however, and voted against the pay plan, saying that the package was excessive.
âWhile we appreciate the significant value created under Mr. Muskâs visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk,â the firm said.
The vote comes months after Musk wrapped up his short-lived government role under President Donald Trump. In February, Musk and his Department of Government Efficiency (DOGE) team sparked a firestorm when they announced plans to eliminate the U.S. Agency for International Development, drawing backlash from Democrats and prompting protests targeting Musk and his companies, including Tesla.
Back in May, Musk announced that his âscheduled timeâ leading DOGE had ended.
(Featured Image Media Credit:Â Screen Capture/CSPAN)
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