Tesla shareholders back Elon Musk's $1trn pay deal
By Abigail Townsend
Date: Friday 07 Nov 2025
(Sharecast News) - Elon Musk has been awarded a $1trn pay package after shareholders voted in favour of the controversial settlement.
Following months of debate and scrutiny, 75% of the votes cast at Thursday's annual general meeting in Austin backed the largest corporate pay package in history.
Under the deal, Musk has been set a series of stretching goals for the next decade, including delivering 20m vehicles, having 1m robot taxis in operation, selling 1m robots and Tesla earning as much as $400bn in core profit.
Tesla stock will also need to rise in tandem. Currently valued at around $1.5trn, it needs to increase initially to $2trn before eventually reaching $8.5trn.
For each step achieved, including the valuation milestones, Musk will be awarded 1% of stock.
If he hits all of his goals, he would eligible for 12% of stock, or around $1trn.
The billionaire - already the world's richest person - warmly welcomed his new pay package.
Speaking at the AGM, he told shareholders: "What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book."
The AGM was attended by numerous retail investors, who regularly cheered Musk's comments and vision for the future of Tesla.
He said: "Other shareholder meetings are like snooze fests, but ours are bangers. I mean, look at this. This is sick."
Some institutional shareholders were concerned about Musk and his long-term role with the company, after a backlash during his time working with Donald Trump weighed on sales.
They also flagged significant corporate governance concerns associated with the pay package. Both Institutional Shareholder Services and Glass Lewis, the proxy advisors, said investors should vote against it.
However, others have long been concerned that Tesla might lose its chief executive, who had threatened to quit if the vote did not go his way.
Musk is widely attributed for building Tesla into the company it currently is, and for increasingly shifting it away from being a pure electric car manufacturer to focus instead on robotics.
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