Tesla shareholders have approved a substantial compensation plan for CEO Elon Musk, potentially nearing $1 trillion. This decision indicates shareholder optimism regarding Musk’s ability to elevate Tesla’s market value to $8 trillion over the next decade. Achieving such a valuation would set Musk on a course to possibly become the world’s first trillionaire.
During a recent meeting in Austin, over 75% of shareholders voted in favor of the compensation package. Musk highlighted the significance of the vote, suggesting it marks a transformative phase for the company. The approval reflects trust from investors that Musk can guide Tesla through an era increasingly dominated by artificial intelligence and robotics.
The compensation plan outlines stringent milestones that Musk must meet to receive additional stock options. These goals include achieving a market capitalization of $2 trillion initially, with subsequent increases of $500 billion until reaching $8.5 trillion by 2035. Additionally, Musk is required to oversee the delivery of 20 million electric vehicles, establish 10 million full self-driving subscriptions, deploy 1 million humanoid robots, and introduce 1 million robotaxis into commercial service. The plan also sets expectations for the company to achieve $400 billion in annual earnings for four consecutive quarters.
Despite the shareholders’ approval, Tesla faces challenges such as declining sales and market share, exacerbated by Musk’s parallel ventures into politics. Recent reports indicated a significant drop in Tesla sales in Europe, including a 50% decline in Germany.
The approval comes amid a broader context of corporate governance concerns, as some investors believe that concentrating power with Musk poses risks to the company’s accountability. Tesla’s board has noted that a rejection of this plan could jeopardize Musk’s leadership role.
In addition to the compensation plan, shareholders approved the election of three board members and the company’s executive compensation rates for 2024, among other measures. However, several other proposals, including an audit for child labor concerns in Tesla’s supply chain, were rejected.
Source: https://www.theguardian.com/technology/2025/nov/06/how-tesla-shareholders-elon-musk-trillionaire