Elon Musk's Record Salary Approval: The Future of Tesla

Tesla CEO Elon Musk received investor approval on Thursday for the largest corporate compensation package in history. Investors supported the plan to transform the electric vehicle manufacturer into an artificial intelligence and robotics technology company. This vote is critical for the future and valuation of Tesla, as Musk's vision influences the company's success.

As the world's richest person, Musk has the potential to acquire $1 trillion in stock over the next decade. This means he could net $878 billion after required payments. Musk made a grand entrance at the company's annual meeting in Austin, Texas, taking the stage with dancing robots.

Among Musk's goals for the next decade are delivering 20 million vehicles, having 1 million robotaxis in use, selling 1 million robots, and achieving up to $400 billion in primary profit. Musk stated, "As far as I can see, the only option is to build a large chip factory."

For Musk to receive payment, Tesla stock value must first rise: from the current $1.5 trillion to $2 trillion, and then to $8.5 trillion. He is rewarded with 1% stock for each of these milestones. If he achieves all these goals, he will have the right to receive a 12% stake, worth approximately $1 trillion.

Some major investors had opposed this plan, citing concerns that it could reduce the stock value. The Tesla board had indicated that Musk might leave the company if such a compensation package was not approved. The vote alleviated investors' concerns that Musk's attention would shift to his other companies, such as SpaceX and xAI. Musk expressed interest in the high voting power he would gain at Tesla as part of this larger compensation package, marking an important step as he prepares to sell his "robot army."