Tesla shareholders approve Elon Musk's trillion-dollar pay package

Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package

Tesla shareholders have overwhelmingly approved a pay package for Elon Musk, which could potentially reward him with nearly one trillion dollars in Tesla stock, provided he meets specific milestones.

Details of the Pay Package

The pay package was approved with 75% of the vote during Tesla’s annual shareholder meeting. It is structured with no base salary for Musk, instead granting him Tesla shares worth approximately one trillion dollars if the company hits certain goals over the next ten years.

Performance Targets

Key targets include increasing Tesla’s market capitalization from around $1.5 trillion currently to more than $8.5 trillion. This would significantly boost the company's overall value.

Comparison with Industry

By comparison, Nvidia, the world’s most valuable company driven by the AI boom, is valued at $4.83 trillion. Nvidia’s CEO earns $50 million annually and owns 3.5% of the company.

Elon Musk currently has an estimated net worth of $460 billion, according to the Bloomberg Billionaires Index.

Context

Musk’s compensation plan reflects the shareholders’ confidence in his leadership and Tesla’s long-term growth potential, tying his pay directly to company performance rather than a fixed salary.

Summary: Tesla’s shareholders approved a historic compensation plan for Elon Musk, potentially awarding him up to $1 trillion in stock if Tesla’s market cap surges over the next decade, emphasizing performance-based rewards.

NPR — 2025-11-07