Texas [US]: Tesla shareholders have approved a record-breaking compensation package for CEO Elon Musk that could make him the world’s first trillionaire if the company achieves its ambitious growth targets, CNN reported.
At Tesla’s annual shareholder meeting on Thursday, over 75% of investors voted in favour of Musk’s stock-based pay plan, excluding the 15% stake he already owns. The announcement was met with cheers and chants from attendees.
“I super appreciate it,” Musk said after the vote, thanking shareholders and Tesla’s board for their continued support, according to CNN.
Unlike most corporate leaders, Musk does not receive a salary. His earnings come entirely from stock options, and this latest deal could grant him as many as 423.7 million Tesla shares over the next decade — a potential payout valued at around USD 1 trillion if Tesla reaches a market capitalization of USD 8.5 trillion.
To achieve that milestone, Tesla’s stock price would need to climb roughly 466% from current levels — a rise that would make it more valuable than Nvidia, currently the world’s largest company with a valuation of about USD 5 trillion.
If Musk secures all 12 tranches of the award, his compensation would average USD 275 million per day, marking the most lucrative executive pay package in history.
Tesla’s board had warned that rejecting the plan might have led Musk to consider stepping away from the company. In a regulatory filing, the board noted that Musk had expressed concerns about his continued role as CEO without greater control — something the new plan could help ensure.
However, the approval comes at a difficult time for Tesla. The electric carmaker’s sales and profits have declined sharply in 2025 amid waning EV demand and reduced U.S. government incentives for electric vehicles, CNN reported.
