Elon Musk is poised to become the world’s first trillionaire after Tesla shareholders voted overwhelmingly to approve a record-breaking $1 trillion pay package for the electric carmaker’s chief executive.
The vote, held at Tesla’s annual general meeting in Austin, Texas, saw investors chant “Elon, Elon” as the result was announced — signalling their confidence in Musk’s leadership despite criticism from major institutional investors.
The deal, which could raise Musk’s stake in Tesla to 25 per cent or more over the next decade, ties the world’s richest man’s rewards to ambitious performance targets that would see Tesla’s market value soar from $1.5 trillion to $8.5 trillion by 2035.
To unlock the full package, Musk must deliver 20 million vehicles annually, deploy one million robotaxis, sell one million humanoid robots, and generate up to $400 billion in annual operating profit within the next ten years.
“What we are about to embark upon is not merely a new chapter of Tesla’s future, but a whole new book,” Musk told cheering shareholders, flanked by the company’s dancing robots. “This really is going to be quite the story.”
Musk, 54, is already the world’s richest individual, with an estimated net worth of $473 billion, according to the Bloomberg Billionaires Index. In addition to Tesla, he leads SpaceX, the rocket manufacturer, and xAI, his artificial intelligence and social media venture.
Tesla’s chairwoman, Robyn Denholm, defended the pay plan, describing it as a necessary incentive to retain Musk and align his focus with the company’s long-term goals.
“Elon is integral to Tesla’s mission,” she said. “This compensation plan ensures he remains fully invested in delivering our next phase of growth.”
More than 75% of shareholder votes were cast in favour of the deal, despite vocal opposition from several major investors, including Norway’s sovereign wealth fund, which branded the payout “excessive.”
Some shareholder advisory groups also criticised the structure of the plan, arguing that Musk’s control over Tesla’s board raises questions about governance and proportionality.
The decision comes as Musk’s previous pay package, approved in 2018, remains under legal review in Delaware’s Chancery Court, where a judge ruled earlier this year that the plan was unfair to shareholders. Tesla has since appealed.
Tesla shares fell 3.5% to $445.91 following the meeting, valuing the company at around $1.5 trillion. Analysts said the modest decline reflected uncertainty over the feasibility of Musk’s targets rather than investor revolt.
Supporters argue that if Musk achieves his goals, both shareholders and Tesla’s strategic position in the global automotive and robotics markets would be transformed.
“The goals are undeniably ambitious,” said one senior analyst at Wedbush Securities. “But if even half are met, Tesla’s investors will be handsomely rewarded, and Musk will have redefined what’s possible for corporate leadership and wealth creation.”
With Musk now firmly focused on robotaxis, robotics, and artificial intelligence, Tesla’s next chapter looks set to push the company — and its founder — into uncharted territory, both technologically and financially.
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Elon Musk on track to become world’s first trillionaire after Tesla shareholders approve $1tn pay deal