Elon Musk Received Approval for Historic Payment Package for Tesla

Turning Point at Tesla

Elon Musk secured the largest corporate compensation package in history with shareholder approval. This approval came as investors supported the plan to transform the electric vehicle manufacturer into a giant in the fields of artificial intelligence and robotics. Shareholders placed great importance on this vote based on Musk’s vision, as Tesla's future and market value are tied to this vision.

Musk aims for Tesla to produce 20 million vehicles, deploy 1 million robotaxis, sell 1 million robots, and achieve around 400 billion dollars in gross profit over the next decade. To reach these targets, Tesla's stock value needs to rise from its current 1.5 trillion dollars level to 2 trillion dollars and eventually reach 8.5 trillion dollars.

At the annual meeting, Musk appeared on stage with dancing robots. To enable this compensation, specific goals must be met; for each goal achieved, Musk receives 1% of the stock. If he successfully completes all targets, he could hold a total of 12%, which would be worth approximately 1 trillion dollars.

However, some major investors opposed the plan, fearing it could reduce the stock value. Tesla's board had indicated that if this compensation package was not approved, Musk might leave the company. This vote alleviated investors' concerns that Musk’s attention might shift to his other companies, such as SpaceX and xAI. Musk expressed that with this package, his voting rights at Tesla would increase and that he was more interested in this than money.