Tesla shareholders overwhelmingly approved a pay package for CEO Elon Musk that could reach $1 trillion, cementing his influence over the company.
The compensation plan, designed to secure Musk’s leadership as Tesla advances artificial intelligence and robotics, garnered more than 75 percent support from investors.
A euphoric Musk thanked shareholders at the company’s Austin factory, prompting cheers of “Elon” after the historic vote result was announced.
The package aims to retain Musk for at least seven-and-a-half years and could increase his Tesla stake from 12 to over 25 percent.
Musk has described Tesla’s potential as nearly boundless, claiming the company could become the world’s most valuable if its autonomous and AI projects succeed.
Tesla Chair Robin Denholm urged shareholders to back the plan, warning the company’s stock could tumble if Musk were to exit the business.
Critics, including activist group Tesla Takedown, slammed the vote, citing falling sales, rising safety concerns, and Musk’s controversial political associations.
Supporters argue the approval reflects confidence in Musk as a visionary, with Wedbush analyst Dan Ives linking the decision to Tesla’s AI-driven growth prospects.
The pay package is contingent on 12 market and operational milestones, including achieving a $2 trillion market value and delivering 20 million vehicles.
Institutional advisors Glass Lewis and ISS criticised the plan, noting its tranches could reward Musk even if some goals are unmet or focus shifts elsewhere.
Despite scrutiny, Tesla investors historically back Musk’s proposals, including a previous $55.8 billion plan repeatedly challenged in Delaware courts.
Musk, already the world’s richest person with a net worth over $500 billion, now faces new milestones that could further expand his control over Tesla’s future.