Tesla Shareholders Approve Elon Musk’s Record $1 Trillion Pay Package

Core Points - Tesla shareholders approved Elon Musk's compensation package, potentially worth up to $1 trillion if aggressive targets are met over the next decade, with over 75% support [1][2] - The compensation is entirely equity-based and contingent on performance conditions, with a net value of approximately $878 billion after accounting adjustments [1] - Major investors and proxy advisers expressed opposition due to concerns over size, dilution, and governance, yet the deal was still approved [2] Compensation Structure - Musk will earn stock in tranches as Tesla meets operational and valuation milestones, with each milestone pair awarding 1% of Tesla stock, up to a total of 12% [3] - The plan requires Musk to remain in a top leadership role for eligibility [3] Milestones and Goals - Tesla must deliver 20 million vehicles cumulatively within the 10-year grant period [7] - Achieve 10 million active paid Full Self-Driving (FSD) subscriptions by the end of the grant period [7] - Produce and deliver 1 million Optimus humanoid robots during the grant period [7] - Deploy 1 million robotaxis in commercial operation during the grant period [7] - Increase market capitalization from $2 trillion to $8.5 trillion in 12 stepwise tranches, with vesting contingent on meeting both market-cap and operational milestones [7] - Generate adjusted EBITDA/earnings of approximately $400 billion in one year [7] Additional Shareholder Actions - Shareholders also approved moving to annual board elections and a proposal for investment in Musk's AI startup xAI [5] - The endorsement reflects investor confidence in Tesla's strategic shift towards autonomy and robotics [5]