(Bloomberg) — Tesla Inc. shareholders approved a $1 trillion compensation package for Chief Executive Officer Elon Musk, the largest payout ever awarded to a corporate leader.
More than 75% of the votes cast were in favor of the unprecedented pay plan, the company said Thursday at its annual meeting. The outcome caps a weekslong campaign by the electric vehicle maker’s board, its CEO and prominent retail investors to build support.
The pay agreement clears a path for Musk, the world’s richest person, to become the first-ever trillionaire and expand his stake in Tesla to 25% or more over the next decade. To achieve the full payout, he’ll have to deliver on targets to significantly expand Tesla’s market value, revive its flagging car business and get the fledgling robotaxi and Optimus robotics efforts off the ground.
“It’s not just a new chapter for Tesla, it’s a new book,” Musk said at the shareholder meeting, wearing a black Tesla jacket as he strode the stage in front of a cheering crowd. “And that new book is massively increasing vehicle production and ramping up Optimus production faster than anything’s ever been ramped up before in human history.”
The compensation vote was pivotal for Tesla, after Musk suggested he could step down or spend more time with his other companies if he didn’t get greater control over the carmaker. He’s now likely to remain at the helm as Tesla pursues an ambitious agenda built around driverless vehicles and artificial intelligence.
Tesla shares rose less than 1% as of 7:16 p.m. in postmarket trading Thursday in New York, paring an earlier gain of as much as 3.4%. The stock was up 10% this year through Thursday’s close, narrowly trailing the 14% advance in the S&P 500 Index.
Musk teased several lofty goals as the company looks to 2026 and beyond.
The CEO, who has led the EV maker since 2008, said that Tesla might end up building a chip factory to get the volume it needs, even as the company works with established suppliers such as Samsung and TSMC.
“Even when we extrapolate the best case scenario for chip production from our suppliers it’s still not enough,” Musk said. “So I think we may have to do a Tesla terafab. It’s like giga but way bigger.”
He said next year will focus on Optimus, the Semi truck and the Cybercab. Musk expects production of Cybercab will be roughly in line with regulatory approval. “I’d like to thank Waymo for paving the path here. It’s very helpful,” he added.
Musk said Tesla has aspirational goals to boost vehicle production volume by about 50% by the end of next year.
Aggressive Effort
The pay package was widely expected to pass, even after several prominent investors came out in opposition, including Norway’s Norges Bank Investment Management, Tesla’s ninth-largest holder. Proxy advisers Institutional Shareholder Services and Glass Lewis recommended investors reject the compensation plan, citing concerns with its magnitude and its potential to dilute other shareholders’ ownership.
The board waged an aggressive effort to garner support, featuring meetings with large institutional shareholders and a series of media appearances by Chair Robyn Denholm. In interviews with Bloomberg News, Denholm cast the vote as crucial to Tesla’s future, which needs an engaged Musk to achieve its goals.
Musk himself sought to rally support, using a portion of Tesla’s recent earnings call to lay out why he wasn’t comfortable building a “robot army” unless he owns a quarter of the company.
Schwab Asset Management earlier this week pledged to back the pay proposal after a number of prominent retail shareholders said on social media that they would move funds out of brokerages that voted in opposition. Several other institutional investors, including Florida’s State Board of Administration, said they would vote for the package.
“Even with the new pay package, there are significant hurdles” to unlocking the payout, including profitably scaling Tesla’s operations and delivering many robots and robotaxis, said Wedbush Securities analyst Dan Ives, a longtime Tesla bull. “Now it’s about driving the most important chapter in Tesla’s history with an autonomous future ahead.”
The win gives Musk a clear, albeit challenging, path to becoming the world’s first trillionaire. Should he hit all of the targets in the plan, including expanding Tesla’s market value to $8.5 trillion, his total stake in the carmaker would be worth roughly $2.4 trillion.
That’s more than quintuple his current net worth of about $460 billion, according to the Bloomberg Billionaires Index. His net worth would exceed the current gross domestic product of all but seven countries.
Up and Down Fortune
Musk’s fortune has been on a roller coaster ride this year. It stood at roughly $450 billion in January when he joined President Donald Trump at his inauguration, but began a rapid decline as the CEO’s politics — including a prominent role at the Department of Government Efficiency — alienated many potential Tesla buyers. A subsequent feud between the two sent Tesla shares plummeting, leaving Musk with the second-worst single-day loss ever recorded by the Bloomberg Billionaires Index.
His wealth has since rebounded, helped by a recovery in Tesla shares as well as booming valuations for his privately held businesses including xAI and SpaceX.
The new package drew pushback from some longtime Musk critics, including New York State Comptroller Thomas DiNapoli, who said Thursday that this was “pay for unchecked power, not pay for performance.” Vermont Senator Bernie Sanders called the plan “totally absurd.”
“People can’t afford their rent, can’t afford health, can’t afford groceries, they can’t afford to retire with dignity,” Sanders told reporters. “And we’re talking about one guy who already owns more wealth in the bottom 52% of American households getting even richer.”
The package comes after Musk’s previous multibillion-dollar compensation plan was struck down by a Delaware judge last year. The company is appealing the ruling and has moved its incorporation to Texas, partly in response to the decision. In August, Tesla’s board also granted Musk an interim award valued at $30 billion, designed to partially replace the payment.
Tesla said Thursday that it needs time to review the votes for a nonbinding shareholder proposal to invest in xAI, Musk’s artificial intelligence startup. Of the votes submitted, more were cast in favor of the plan than against it, but the volume of abstentions was so high that it merited further discussion, Tesla said.
The measure, calling for an investment “in an amount and form deemed appropriate by the board,” is advisory, meaning Tesla is not required to move ahead. Musk has been publicly supportive of an investment and floated the idea of a $5 billion stake last year.
—With assistance from Craig Trudell, Kurt Wagner, Ed Ludlow and Erik Wasson.
(Updates with additional details beginning in seventh paragraph.)
More stories like this are available on bloomberg.com
https://protect-ca.mimecast.com/s/3G0WCE8k3qiWk4K2HNap63?domain=ftp.us-midwest-1.vip.tn-cloud.net
©2025 Bloomberg L.P.
(Bloomberg) — Tesla Inc. shareholders approved a $1 trillion compensation package for Chief Executive Officer Elon Musk, the largest payout ever awarded to a corporate leader.
More than 75% of the votes cast were in favor of the unprecedented pay plan, the company said Thursday at its annual meeting. The outcome caps a weekslong campaign by the electric vehicle maker’s board, its CEO and prominent retail investors to build support.
The pay agreement clears a path for Musk, the world’s richest person, to become the first-ever trillionaire and expand his stake in Tesla to 25% or more over the next decade. To achieve the full payout, he’ll have to deliver on targets to significantly expand Tesla’s market value, revive its flagging car business and get the fledgling robotaxi and Optimus robotics efforts off the ground.
“It’s not just a new chapter for Tesla, it’s a new book,” Musk said at the shareholder meeting, wearing a black Tesla jacket as he strode the stage in front of a cheering crowd. “And that new book is massively increasing vehicle production and ramping up Optimus production faster than anything’s ever been ramped up before in human history.”
The compensation vote was pivotal for Tesla, after Musk suggested he could step down or spend more time with his other companies if he didn’t get greater control over the carmaker. He’s now likely to remain at the helm as Tesla pursues an ambitious agenda built around driverless vehicles and artificial intelligence.
Tesla shares rose less than 1% as of 7:16 p.m. in postmarket trading Thursday in New York, paring an earlier gain of as much as 3.4%. The stock was up 10% this year through Thursday’s close, narrowly trailing the 14% advance in the S&P 500 Index.
Musk teased several lofty goals as the company looks to 2026 and beyond.
The CEO, who has led the EV maker since 2008, said that Tesla might end up building a chip factory to get the volume it needs, even as the company works with established suppliers such as Samsung and TSMC.
“Even when we extrapolate the best case scenario for chip production from our suppliers it’s still not enough,” Musk said. “So I think we may have to do a Tesla terafab. It’s like giga but way bigger.”
He said next year will focus on Optimus, the Semi truck and the Cybercab. Musk expects production of Cybercab will be roughly in line with regulatory approval. “I’d like to thank Waymo for paving the path here. It’s very helpful,” he added.
Musk said Tesla has aspirational goals to boost vehicle production volume by about 50% by the end of next year.
Aggressive Effort
The pay package was widely expected to pass, even after several prominent investors came out in opposition, including Norway’s Norges Bank Investment Management, Tesla’s ninth-largest holder. Proxy advisers Institutional Shareholder Services and Glass Lewis recommended investors reject the compensation plan, citing concerns with its magnitude and its potential to dilute other shareholders’ ownership.
The board waged an aggressive effort to garner support, featuring meetings with large institutional shareholders and a series of media appearances by Chair Robyn Denholm. In interviews with Bloomberg News, Denholm cast the vote as crucial to Tesla’s future, which needs an engaged Musk to achieve its goals.
Musk himself sought to rally support, using a portion of Tesla’s recent earnings call to lay out why he wasn’t comfortable building a “robot army” unless he owns a quarter of the company.
Schwab Asset Management earlier this week pledged to back the pay proposal after a number of prominent retail shareholders said on social media that they would move funds out of brokerages that voted in opposition. Several other institutional investors, including Florida’s State Board of Administration, said they would vote for the package.
“Even with the new pay package, there are significant hurdles” to unlocking the payout, including profitably scaling Tesla’s operations and delivering many robots and robotaxis, said Wedbush Securities analyst Dan Ives, a longtime Tesla bull. “Now it’s about driving the most important chapter in Tesla’s history with an autonomous future ahead.”
The win gives Musk a clear, albeit challenging, path to becoming the world’s first trillionaire. Should he hit all of the targets in the plan, including expanding Tesla’s market value to $8.5 trillion, his total stake in the carmaker would be worth roughly $2.4 trillion.
That’s more than quintuple his current net worth of about $460 billion, according to the Bloomberg Billionaires Index. His net worth would exceed the current gross domestic product of all but seven countries.
Up and Down Fortune
Musk’s fortune has been on a roller coaster ride this year. It stood at roughly $450 billion in January when he joined President Donald Trump at his inauguration, but began a rapid decline as the CEO’s politics — including a prominent role at the Department of Government Efficiency — alienated many potential Tesla buyers. A subsequent feud between the two sent Tesla shares plummeting, leaving Musk with the second-worst single-day loss ever recorded by the Bloomberg Billionaires Index.
His wealth has since rebounded, helped by a recovery in Tesla shares as well as booming valuations for his privately held businesses including xAI and SpaceX.
The new package drew pushback from some longtime Musk critics, including New York State Comptroller Thomas DiNapoli, who said Thursday that this was “pay for unchecked power, not pay for performance.” Vermont Senator Bernie Sanders called the plan “totally absurd.”
“People can’t afford their rent, can’t afford health, can’t afford groceries, they can’t afford to retire with dignity,” Sanders told reporters. “And we’re talking about one guy who already owns more wealth in the bottom 52% of American households getting even richer.”
The package comes after Musk’s previous multibillion-dollar compensation plan was struck down by a Delaware judge last year. The company is appealing the ruling and has moved its incorporation to Texas, partly in response to the decision. In August, Tesla’s board also granted Musk an interim award valued at $30 billion, designed to partially replace the payment.
Tesla said Thursday that it needs time to review the votes for a nonbinding shareholder proposal to invest in xAI, Musk’s artificial intelligence startup. Of the votes submitted, more were cast in favor of the plan than against it, but the volume of abstentions was so high that it merited further discussion, Tesla said.
The measure, calling for an investment “in an amount and form deemed appropriate by the board,” is advisory, meaning Tesla is not required to move ahead. Musk has been publicly supportive of an investment and floated the idea of a $5 billion stake last year.
—With assistance from Craig Trudell, Kurt Wagner, Ed Ludlow and Erik Wasson.
(Updates with additional details beginning in seventh paragraph.)
More stories like this are available on bloomberg.com
https://protect-ca.mimecast.com/s/3G0WCE8k3qiWk4K2HNap63?domain=ftp.us-midwest-1.vip.tn-cloud.net
©2025 Bloomberg L.P.
