In a move that underscores the extraordinary compensation landscape within the tech industry, Tesla shareholders have overwhelmingly approved a compensation plan potentially worth a staggering US$1 trillion for CEO Elon Musk. This landmark decision, which passed with over 75% of the vote, sets the stage for Musk to accumulate immense wealth if he guides Tesla towards ambitious performance targets over the next decade.
The deal, shrouded in controversy since its inception, will be phased in based on a series of milestones, mirroring the structure of Musk’s previous, now-voided US$56 billion incentive package. These benchmarks involve significant scaling of Tesla’s operations: deploying one million autonomous robotaxis, achieving vehicle production targets reaching 20 million Teslas on the road, and propelling Tesla’s valuation to astronomical heights between US$2 trillion and US$8.5 trillion.
Adding a layer of complexity, Musk himself owns approximately 15% of Tesla stock and was permitted to vote in favor of this very lucrative package. This scenario raises questions about potential conflicts of interest and the power dynamics inherent in such arrangements. It also highlights the immense financial influence wielded by single individuals within publicly traded companies.
Tesla Chairwoman Robyn Denholm, during pre-vote deliberations, warned that a failure to approve the massive compensation plan could lead to Musk departing from the company altogether. She characterized a negative vote as a “negative sign on his leadership,” underscoring the perceived importance of this package in retaining Tesla’s charismatic but controversial CEO.
Musk himself is already at the helm of several other high-profile ventures, including SpaceX and xAI (formerly known as X), which recently acquired control of the social media platform formerly called Twitter. His tenure there has been punctuated by controversy stemming from his inflammatory posts on X, an alleged Nazi salute during President Trump’s 2025 inauguration speech, and his brief stint heading a controversial entity dubbed “Department of Government Efficiency” (DOGE).
Despite these controversies, Musk remains the world’s wealthiest individual according to Forbes, with a net worth currently estimated at US$482 billion. During Tesla’s recent annual general meeting, he solidified his vision for the company’s future, emphasizing artificial intelligence and robotics as key drivers of growth.
Musk touted Tesla’s Optimus robot as “the biggest product of all time by far,” projecting a launch date for Version 3 in 2026. He ventured even further, suggesting that annual production could reach staggering figures like 100 million or even 1 billion units, claiming both the Fremont and Austin factories are capable of such volume.
While these claims about future robot production are aspirational, Musk’s track record on timelines for other ambitious Tesla projects is mixed. His earlier prediction of one million self-driving taxis operational by 2020 never materialized; robotaxi services have only just begun in a limited capacity in Austin this year. Additionally, the long-awaited Tesla Semi truck, unveiled in 2017, continues to face repeated delays in reaching market launch.
Musk acknowledged that electric vehicles still form Tesla’s core business, but insisted that demand will continue to surge driven by the company’s self-driving technology. He highlighted the impending production of the Cybercab, a two-door, two-seat vehicle slated for April 2026, designed specifically for autonomous taxi fleets and lacking a traditional driver’s seat.
Despite Tesla’s recent sales dip – down roughly 6% to 1.22 million vehicles through September – placing it behind BYD in global market share, Musk remains confident in the company’s trajectory. Whether this ambitious pay package fuels further innovation and success for Tesla remains to be seen, but its sheer magnitude has undeniably cemented Elon Musk’s position as a titan of industry with a compensation structure unlike anything else in corporate history.
