Texas: Tesla shareholders have approved a $1 trillion compensation package for Chief Executive Elon Musk, marking one of the largest corporate pay deals in history.
The approval, announced during the company’s annual shareholder meeting in Austin, Texas, has highlighted continued investor confidence in Musk’s ability to steer Tesla into a future shaped by robotics and artificial intelligence.
More than 75 percent of Tesla shareholders have voted in favour of the plan. The decision follows months of debate among investors, some of whom raised concerns over Musk’s influence and the company’s slowing sales. The new pay deal will depend on Musk achieving ambitious performance goals, including increasing Tesla’s market capitalisation to $8.5 trillion and expanding production of electric vehicles, autonomous systems, and humanoid robots.
The package, divided into 12 tranches, requires Musk to remain with Tesla for at least seven and a half years and to deliver sustained profitability across multiple quarters. If successful, the payout could raise Musk’s ownership to 25 percent of the company’s shares. As of early November, Tesla’s stock traded near $450 per share.
Shareholders also approved reinstating Musk’s 2018 compensation plan, previously voided by a Delaware court ruling. The earlier $56 billion package had been contested for excessive concentration of power. Following the court’s decision, Tesla moved its corporate base from Delaware to Texas, where shareholders once again endorsed the plan under state law.
Supporters say the approval underscores Tesla shareholders’ faith in Musk’s long-term vision for the company, while critics argue it grants too much control to one individual. As Tesla expands into robotics and autonomous mobility, the decision signals investor readiness to back Musk’s ambitious roadmap despite market uncertainties
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