**Summary of Tesla Shareholders' Approval of Elon Musk's Compensation Package**
On Thursday, Tesla shareholders voted decisively in favor of a new compensation package for CEO Elon Musk, one that could ultimately be worth as much as $1 trillion in company shares. More than 75% of participating shareholders supported the proposal, reflecting the continued high level of confidence Tesla’s investor base has in Musk’s leadership. The announcement came during Tesla’s annual shareholder meeting held at the company’s factory in Austin, Texas, where Musk was greeted with chants of “Elon! Elon!” and a display featuring Tesla’s humanoid Optimus robots.
**Structure of the Compensation Package**
This newly approved compensation plan does not grant Musk a $1 trillion payout upfront, nor does it provide him with a traditional salary. Instead, the package is structured to reward Musk with large tranches of Tesla stock if the company reaches a series of ambitious performance targets. These targets are divided into 12 tranches and include metrics related to operational milestones, adjusted profit figures, and, crucially, market capitalization goals. For example, Tesla, which currently has a market valuation of about $1.5 trillion, would need to achieve a staggering $8.5 trillion valuation within the next decade for Musk to receive the full award.
Each tranche that Tesla achieves will unlock additional shares for Musk, potentially positioning him to receive hundreds of billions of dollars in stock over time. However, these goals are not all equally challenging: some represent significant hurdles, while others are seen as updated versions of promises Musk has made in the past regarding Tesla’s growth and profitability.
**A Hard-Fought Campaign**
The vote came after an intense and highly visible campaign by Tesla’s leadership to persuade shareholders to approve the package. Over the past two months, the company and its board members made repeated public appeals, emphasizing the importance of the plan for Tesla’s future. Robyn Denholm, Tesla’s chairwoman, who is usually not active in the media, took on a central role, participating in several interviews and even losing her voice after a whirlwind of efforts leading up to the shareholder meeting. Tesla also took the unusual step of running television advertisements specifically to encourage votes in favor of the package—a notable move, given that Tesla famously avoids advertising its vehicles on TV.
Denholm described the moment as a pivotal one for Tesla, stating, “Tesla is at an inflection point … and this last year has been a critical one in our history.” She, along with other board members, argued that Musk’s leadership is essential for Tesla’s continued innovation and growth.
**Musk’s Influence and Stakes**
Musk himself urged shareholders to back the package by arguing that it would help consolidate his control over Tesla. Currently, Musk owns around 15% of the company but has repeatedly threatened to leave if he cannot secure about 25% voting power. He claims this level of control is necessary to prevent him from being ousted and to protect his vision for Tesla, including ambitious