**Tesla Shareholders Approve Massive Pay Package for Elon Musk Despite Concerns Over His Focus**
Tesla shareholders have voted to approve a landmark compensation package for CEO Elon Musk, one that could potentially pay him over $1 trillion over the next decade, provided he meets a series of ambitious operational and financial milestones. This decision, supported by more than 75% of voting shareholders, comes amid ongoing debate about Musk’s divided attention between Tesla and his other high-profile ventures, including SpaceX, X (formerly Twitter), and the artificial intelligence startup xAI.
**Details of the Pay Package**
The approved compensation plan would grant Musk 423,743,904 Tesla shares, distributed in 12 tranches of roughly 35 million shares each, as he achieves specific company goals. The milestones are exceptionally aggressive: delivering 20 million vehicles annually, securing 10 million subscriptions to Tesla’s Full Self-Driving software, deploying 1 million “AI robots,” launching 1 million robotaxis, and reaching an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $400 billion. The plan also includes market capitalization targets, culminating at an extraordinary $8.5 trillion valuation for Tesla—far beyond the worth of any company in history.
Should Musk achieve all of these targets, not only would his compensation soar to an estimated $1 trillion, but his ownership stake in Tesla would increase to nearly 25%, or even close to 29% if the company wins an appeal related to his 2018 pay plan, which was previously voided in court.
**Supporters’ Arguments: Motivation and Vision**
Tesla’s board, led by Chair Robyn Denholm, has argued that such an outsized pay package is necessary to retain Musk’s leadership and drive. Denholm and other supporters point to Musk’s unique vision and ability to push Tesla into groundbreaking technological territory. In a letter to shareholders, Denholm highlighted the risk of losing Musk’s commitment if the company failed to offer a sufficiently motivating compensation structure. She described Musk as someone with the rare capacity to juggle multiple ventures while still delivering innovation and growth at Tesla.
Supporters further argue that the plan is truly “pay for performance.” If Musk fails to meet the ambitious goals, he receives nothing. But if he succeeds, shareholders stand to benefit from Tesla achieving unprecedented growth and market value. Some investors, like Nancy Tengler of Laffer Tengler Investments, expressed comfort with the arrangement, noting that if Tesla’s stock appreciates sixfold as required by the plan, shareholders’ returns will be massive, justifying Musk’s compensation.
Ron Baron, CEO of Baron Capital and a Tesla investor, echoed this sentiment, stating that shareholders would realize gains before Musk does, as the plan requires Tesla to reach “aggressive market cap objectives that few believe can be attained.” He described the package as ensuring that “shareholders win first, and that Elon Musk continues to lead Tesla for many years to come.”
**Critics