Tesla Shareholders Approve $1 Trillion Pay Deal for Elon Musk

Tesla shareholders have overwhelmingly approved a groundbreaking pay package for CEO Elon Musk that could potentially reach an astonishing $1 trillion if he successfully meets specific performance targets. This significant agreement, which garnered more than 75 percent support during the company’s annual meeting, aims to secure Musk’s continued leadership as Tesla advances its ambitions in artificial intelligence and robotics.

The new compensation plan consists of twelve tiers, similar to the one approved in 2018. The structure ties Musk’s financial rewards to the ambitious goal of increasing Tesla’s market value from approximately $1.4 trillion to a staggering $8.5 trillion. To achieve this, Musk must meet several challenging benchmarks, including selling one million humanoid robots and obtaining ten million paid subscriptions for Tesla’s self-driving software.

Achieving this market valuation would require Tesla’s stock price to rise by 466 percent, which would surpass the current market cap of Nvidia, the world’s most valuable company, which recently reached $5 trillion.

Despite the ambitious goals, Tesla faces considerable challenges. The company has reported declines in both sales and profits during the first half of the year, compounded by the reduction of U.S. government incentives for electric vehicle buyers. Nevertheless, Musk and Tesla executives remain committed to their vision of evolving beyond traditional electric vehicles. They are betting on a future that includes self-driving cars, “robotaxis,” and humanoid robots.

If Musk attains the outlined targets, he could make history by becoming the first trillionaire. His current net worth is estimated at around $480 billion, according to the latest Forbes real-time billionaire rankings. This positions him as the world’s richest individual, followed by Oracle CEO Larry Ellison with a net worth of $350.7 billion and Meta CEO Mark Zuckerberg at $245.8 billion.

Musk’s journey to wealth began after graduating from the University of Pennsylvania and dropping out of Stanford University. He gained his initial millions by selling an online publishing software company to Compaq for over $300 million in 1999.

The shareholder vote not only highlights Musk’s potential pay but also reflects the broader ambitions of Tesla as it seeks to redefine its role in the automotive industry and beyond. The decision marks a pivotal moment for the company as it navigates a rapidly evolving market landscape.