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Elon Musk’s Historic $1 Trillion Payday Approved As Tesla Accelerates Into AI And Robotics Future
Tesla shareholders have voted to approve an unprecedented $1 trillion compensation package for Chief Executive Officer Elon Musk, marking the largest executive pay deal in corporate history and reinforcing his dominant role in shaping the company’s future in artificial intelligence and robotics.
The approval came during Tesla’s annual general meeting in Austin, Texas, where more than 75 percent of shareholders voted in favour of the plan. The package allows Musk to unlock stock awards worth up to $1 trillion over the next decade, contingent on meeting highly ambitious milestones, including building 20 million electric vehicles, launching one million robotaxis, and raising Tesla’s market value to as much as $8.5 trillion.
The decision represents a defining moment for both Musk and Tesla. Taking the stage to cheers and dancing robots, Musk declared that the company was “beginning a whole new book” in its journey. He promised production of the two-seater, steering-less Cybercab robotaxi would begin in April and announced plans to unveil the next, generation Roadster electric sports car.
Shareholders also re-elected three board members and backed a proposal for annual board elections, signalling a shift toward stronger corporate governance. A replacement for Musk’s earlier compensation plan, which had been stalled in court, was also approved.
The Tesla board had previously warned that Musk might consider stepping away if the pay package was rejected, intensifying pressure on investors. While critics branded the deal “excessive,” supporters argued that tying Musk’s rewards to performance ensures alignment with shareholder interests as Tesla evolves from a carmaker into an AI-powered robotics company.
Investors further approved a motion allowing Tesla to invest in Musk’s artificial intelligence startup, xAI, despite concerns over potential conflicts of interest. Governance experts called for strict oversight to prevent overlaps between Musk’s ventures.
Although major investors such as Norway’s sovereign wealth fund and leading proxy advisory firms opposed the deal, Musk’s 15 percent ownership stake proved decisive. Analysts say the outcome highlights his enduring influence and shareholders’ confidence in his leadership.
Under the terms of the agreement, Musk’s stock awards will vest in stages as operational and market-cap targets are achieved. Meeting all goals would give him up to 12 percent of Tesla’s shares, valued at roughly $878 billion after deductions, though partial achievements could still yield him tens of billions of dollars.
Musk insisted the plan was not about personal wealth but about maintaining the influence needed to drive Tesla’s vision of a “robot army” of autonomous vehicles and humanoid machines.
With this record-breaking approval, Tesla now faces the challenge of turning Musk’s bold promises into reality, a test of innovation, leadership, and investor faith in one of the most ambitious corporate strategies ever pursued.