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

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

As the world’s richest person, Musk has the potential to gain $1 trillion in stock over the next decade. This means he could achieve a net gain of $878 billion after the necessary payments. Musk brought a grand event to the company's annual meeting in Austin, Texas, appearing on stage with dancing robots.

Among Musk's goals for the next decade are delivering 20 million cars, having 1 million robotaxis in operation, selling 1 million robots, and generating a core profit of up to $400 billion. Musk stated, "As far as I can tell, the only option is to build a big chip factory."

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

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