Tesla approves record pay deal worth nearly $1 trillion for Musk

Elon Musk has once again made history. Tesla shareholders have approved what could become the most lucrative executive pay package ever, potentially worth close to $1 trillion. The vote, held during the company’s annual general meeting in Austin, Texas, on Thursday, saw about 75 percent of investors support the record-breaking deal.

The decision triggered loud cheers inside the packed venue as Musk took the stage, smiling and dancing while fans chanted his name. “What we’re about to embark upon is not merely a new chapter, but a whole new book for Tesla,” he told the crowd.

A reward tied to bold targets

Under the plan, Musk will receive hundreds of millions of Tesla shares if he manages to dramatically raise the company’s market value and meet several long-term goals. One of the main targets involves pushing Tesla’s valuation to $8.5 trillion from its current level of around $1.4 trillion. Another milestone requires bringing a million self-driving Robotaxi vehicles into commercial use.

Tesla’s board argued the deal was necessary to keep Musk focused on the company, warning that losing him could harm its future. However, critics have questioned the scale of the payout, calling it excessive. Norway’s sovereign wealth fund and California’s CalPERS pension fund were among the major investors that opposed the deal.

Focus on robots over cars

Despite the excitement, some investors were uneasy about Musk’s priorities. During his presentation, he appeared more interested in discussing Optimus, Tesla’s humanoid robot, than the company’s electric vehicles. Analyst Gene Munster from Deepwater Asset Management said Musk’s comments showed “where his head is at” and noted that there was “no mention of cars, FSD or Robotaxi yet.”

Later, Musk did touch on Tesla’s Full Self-Driving (FSD) software, saying the company was “almost comfortable” allowing drivers to “text and drive essentially.” The remark drew attention given ongoing investigations by US regulators into Tesla’s self-driving systems after several crashes.

Mixed reaction and growing scrutiny

Tesla shares rose slightly after the announcement and have climbed more than 60 percent over the past six months. Analysts such as Dan Ives from Wedbush Securities described Musk as “Tesla’s biggest asset,” saying the company was entering a new phase where artificial intelligence would play a bigger role in its value.

The pay package’s approval marks a major comeback for Musk after a Delaware court struck down a previous version earlier this year, ruling that Tesla’s board was too closely tied to him. Since then, Tesla has shifted its corporate registration from Delaware to Texas, and the earlier ruling is still being reviewed by the state’s Supreme Court.

For now, Musk’s victory cements his grip on Tesla and reinforces his image as the driving force behind one of the world’s most valuable carmakers. Whether the near-trillion-dollar reward turns into reality will depend on how well he can steer Tesla through an era of fierce competition, slowing EV sales, and his growing fascination with robots and AI.