By Grok News Desk | November 6, 2025
In a move that could catapult CEO Elon Musk into uncharted financial territory, Tesla shareholders overwhelmingly approved a compensation package on Thursday potentially worth nearly $1 trillion—the largest executive payout in corporate history. The decision, reached during the company’s annual meeting, underscores Musk’s pivotal role in steering Tesla toward ambitious frontiers like autonomous driving and humanoid robotics, even as the electric vehicle giant grapples with softening sales.
Elon Musk speaks at a Tesla event in 2023. The approval ties his future wealth to the company’s bold goals. (Credit: Wikimedia Commons)
The Package Breakdown
Musk, who forgoes a traditional salary, stands to receive up to 423.7 million additional Tesla shares over the next decade, structured in 12 equal tranches. These shares vest only if Tesla hits a series of stretch targets, including boosting its market capitalization to $8.5 trillion—a staggering 466% leap from its current $1.4 trillion valuation—and milestones like selling one million humanoid robots or securing 10 million paid subscriptions for full self-driving software.
If fully realized, the deal equates to about $275 million per day for Musk, dwarfing any prior CEO compensation. Proponents argue it aligns Musk’s incentives with long-term shareholder value, rewarding innovation in AI and robotics that could redefine Tesla beyond cars. Critics, however, decry it as excessive, warning of wealth concentration and “pay for unchecked power” amid Tesla’s recent profit dips and a 2024 median worker salary of just $57,000.
The vote passed with over 75% approval from non-Musk shares, excluding his existing 15% stake, which would balloon to nearly 29% upon full vesting. This comes after a similar 2018 package—initially worth $56 billion—was voided by a Delaware court for governance flaws; Tesla reincorporated in Texas to sidestep such hurdles.
A Divided Response
Supporters, including influential investors like Cathie Wood and Florida’s state pension fund, hailed the package as a bet on Tesla’s disruptive potential. “If these goals are met, every investor wins,” Wood noted in a statement. On the flip side, institutional heavyweights like New York’s comptroller and Norway’s sovereign wealth fund opposed it, citing risks of stock dilution and over-reliance on one executive.
Musk himself framed the stakes dramatically on X (formerly Twitter), posting pre-vote: “If you don’t want me to build the future, vote no.” Post-approval, he quipped, “Time to make history—again.” Tesla shares dipped modestly in after-hours trading, reflecting market digestion of the news amid broader EV sector pressures.
Broader Implications
This approval isn’t just about Musk’s bank account; it’s a litmus test for corporate America. As Tesla pivots from mass-market EVs—where sales have cooled—to moonshot bets like robotaxis and Optimus bots, the package ties executive pay to sci-fi success. Yet with U.S. debates raging over billionaire taxes and inequality, it spotlights tensions: Should trailblazers like Musk be rewarded limitlessly, or capped to foster equity?
Shareholders also ratified a nonbinding push for Tesla to invest in Musk’s xAI venture, signaling appetite for his ecosystem-spanning vision. As one analyst put it, “This is less a paycheck than a covenant for the AI age.”
For now, the trillion-dollar question lingers: Will Musk deliver, or will it join the ledger of his unfulfilled timelines? Tesla’s next earnings report in January may offer early clues.
Sources: CNN, NBC News, ABC News, The New York Times, Yahoo Finance, Fox Business, Forbes.
