Austin, Texas – November 7, 2025 – In a landmark decision that underscores unwavering investor faith in his visionary leadership, Tesla shareholders on Thursday overwhelmingly approved a groundbreaking compensation package for CEO Elon Musk, potentially worth up to $1 trillion in stock awards over the next decade. The vote, held at the electric vehicle giant's headquarters in Austin, Texas, positions Musk – already the world's richest individual with an estimated net worth of $473 billion – on a trajectory to become the first trillionaire, contingent on Tesla achieving audacious growth milestones in market capitalization, vehicle deliveries, and artificial intelligence innovations.
The approval comes amid a turbulent year for Tesla, marked by plummeting sales in key international markets and intensifying global competition in the electric vehicle (EV) sector. Yet, more than 75% of voting shareholders endorsed the plan, echoing the strong support seen in last year's ratification of Musk's original $56 billion package, which had been voided by a Delaware court before being reinstated under Texas law. "This is a resounding vote of confidence in Elon's ability to lead Tesla into its next era of explosive growth," said Robyn Denholm, Tesla's board chair, in a statement following the tally. The package, structured as performance-based stock grants totaling approximately 423 million shares, will vest in tranches only if Tesla hits escalating targets: starting with a $2 trillion market cap and culminating at $8.5 trillion by 2035, alongside goals like delivering 20 million vehicles annually, deploying 1 million robotaxis, and selling 1 million humanoid Optimus robots.
Musk, who forgoes a traditional salary, framed the deal not as a cash grab but as a mechanism to bolster his ownership stake from around 13% to 25%, granting him greater control to steer Tesla toward dominance in AI and robotics. "It's not really about the money – it's about having enough skin in the game to focus on the future," Musk remarked during the meeting, adding a playful nod to investors: "Fantastic group of shareholders. Hang on to your Tesla stock." His comments resonated with the crowd of over 1,000 attendees, many of whom waved signs proclaiming "Elon for Trillionaire" and chanted support for the entrepreneur's bold bets on autonomous driving and humanoid robotics.
The vote's outcome was hardly surprising, given Musk's subtle – and at times overt – pressure tactics. In recent months, he has repeatedly hinted at the risk of his departure, warning that without enhanced voting power, he might redirect his energies to ventures like SpaceX or xAI, potentially leaving Tesla adrift. Such threats evoked memories of 2018, when the original package was approved amid similar fears of executive flight. Analysts note that Musk's gravitational pull on Tesla's innovation pipeline remains unmatched; under his stewardship, the company has revolutionized EVs, built a global supercharger network, and pioneered Full Self-Driving software. "Elon is the ultimate 'key man' – without him, Tesla's story changes dramatically," said Ron Baron, founder of Baron Capital, a major Tesla investor who backed the plan.
Market reaction was swift and positive. Tesla shares, which have surged 80% over the past year on optimism around AI integrations and Cybertruck ramp-up, climbed an additional 1.5% in after-hours trading to $447.27, from a closing price of $440.89 earlier in the session. This uptick reflects broader investor enthusiasm for Tesla's pivot beyond cars: Musk envisions Optimus robots as a "bigger product than anything – even cell phones," potentially generating hundreds of billions in revenue and reshaping labor markets. Achieving the full $1 trillion payout would require Tesla's valuation to balloon eightfold, a feat that, while ambitious, aligns with projections from bullish analysts forecasting $400 billion in annual profits by decade's end through robotaxi fleets and energy storage dominance.
Yet, the celebration was tempered by stark reminders of Tesla's vulnerabilities. Just three days prior, a European Automobile Manufacturers' Association (ACEA) report revealed a sharp October sales plunge across the continent, with registrations down 50% in Germany – Tesla's third-largest market – to a mere 750 units, outpaced by Chinese rival BYD's record 3,353 sales. Broader declines included 89% drops in Sweden, 86% in Denmark, and 50% in Norway, contributing to a year-to-date European sales skid of over 30%. These figures, proxies for actual deliveries, highlight intensifying headwinds: an aging Model 3 and Y lineup facing fresher competitors from Volkswagen, Hyundai, and BYD; subsidy cuts in markets like Germany; and consumer backlash tied to Musk's polarizing political stances, including his vocal support for former President Donald Trump and role in the Department of Government Efficiency (DOGE).
Critics, including proxy advisors Glass Lewis and Institutional Shareholder Services, decried the package as excessive, arguing it dilutes shareholder value without adequately addressing "key person risk" – the peril of over-reliance on one executive. Norway's $1.9 trillion sovereign wealth fund, holding a 1.2% Tesla stake, voted against it, citing concerns over the award's scale and lack of safeguards. Even Pope Leo XIV weighed in last month, lamenting executive pay disparities as "600 times" worker salaries and questioning the societal message of a trillionaire's ascent. Legal challenges loom; while the 2024 Delaware ruling was sidestepped by reincorporating in Texas, fresh lawsuits could test the package's enforceability.
For Musk, whose fortune derives primarily from Tesla (about 37%) and SpaceX (42% stake in a $350 billion-valued firm), the approval is a personal vindication. His net worth, which briefly hit $500 billion in October before settling at $473 billion amid market fluctuations, now stands to multiply exponentially if Tesla executes on autonomy and robotics. Bloomberg estimates that full vesting could catapult him past $1.4 trillion, dwarfing peers like Nvidia's Jensen Huang.
Shareholders also passed ancillary proposals, including electing three board members, approving 2024 executive pay rates, and easing supermajority voting rules to streamline governance. A separate measure to invest in Musk's xAI drew mixed support, with high abstentions prompting board review.
As Tesla navigates these crosscurrents, the package symbolizes a high-stakes gamble: Will Musk's charisma and ingenuity propel the company to trillion-dollar valuations, or will sales woes and distractions prove fatal? "This isn't just pay – it's a contract for the future," said Columbia Law School professor Eric Talley. "Elon has rallied the troops, but delivering will require more than gravity." For now, the faithful in Austin are betting big – and the world watches as Tesla accelerates toward an uncertain horizon.
