Tesla CEO Elon Musk is one step closer to becoming the world’s first trillionaire after shareholders overwhelmingly approved a massive pay package valued at up to $1 trillion, contingent on him meeting a series of ambitious performance goals over the next decade.
At Tesla’s annual meeting in Austin, Texas, more than 75% of voters backed the compensation plan — a striking show of confidence in Musk even as the electric carmaker battles declining sales, shrinking profits and growing competition.
“Fantastic group of shareholders,” Musk said after the vote, urging them to “hang on to your Tesla stock.”
The approval underscores investors’ enduring faith in Musk’s ability to engineer turnarounds like the one that transformed Tesla from a struggling startup into one of the world’s most valuable companies. Still, critics warn the reward is excessive and risky given Musk’s erratic behavior and political ventures.
The board’s plan ties the payout to steep milestones, including boosting Tesla’s market capitalization nearly sixfold and delivering 20 million electric vehicles over ten years. Musk must also deploy one million humanoid robots, a vision he describes as a “robot army.”
If he meets those targets, Musk could eclipse industrialist John D. Rockefeller, whose fortune is estimated at $630 billion in today’s dollars. Forbes currently values Musk’s wealth at around $493 billion.
Opposition came from major investors, including CalPERS and Norway’s sovereign wealth fund, along with watchdog groups Institutional Shareholder Services and Glass Lewis, who called the package excessive. Musk lashed out, branding them “corporate terrorists.”
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Supporters argue the deal aligns Musk’s incentives with Tesla’s long-term growth and its expansion into artificial intelligence. “This AI chapter needs one person to lead it, and that’s Musk,” said Dan Ives, an analyst at Wedbush Securities. “It’s a huge win for shareholders.”
Tesla shares climbed in after-hours trading before closing nearly flat at $445.44. Musk claimed the vote was about influence, not money, saying it would double his stake in Tesla to nearly 30%, giving him more control over its AI-powered future.
Shareholders also approved a measure allowing Tesla to invest in Musk’s AI startup, xAI, while rejecting a proposal to make it easier for minority shareholders to sue the company.
Source: AP