Tesla shareholders have approved a massive compensation package for CEO Elon Musk that could make him the world's first trillionaire. Over 75 percent backed the plan at the company's annual meeting on Thursday, despite concerns from major investors about its unprecedented scale.
The package is valued at up to $1 trillion and ties Musk's compensation entirely to ambitious performance targets. Tesla must reach a market value of $8.5 trillion within a decade, up from approximately $1 trillion today. The company would need to deliver 20 million vehicles, produce one million AI-powered Optimus robots, and achieve 10 million Full Self-Driving subscriptions.
Musk receives no salary and hasn't had significant compensation for eight years due to legal battles over a previous pay plan. The new package comes entirely as Tesla stock, doubling his current 15 percent stake to around 30 percent if targets are met. He told shareholders: «It's not just a new chapter for Tesla. It's a new book.»
Concerns Mount Despite Approval
Norway's $2 trillion sovereign wealth fund opposed the package, citing concerns about its total size, shareholder dilution, and concentration of power in one individual. Critics question the timing as Tesla faces declining sales globally, including a 50 percent drop in Germany. Crucial US tax credits that boosted sales have also expired.
The approval highlights broader tensions about wealth distribution in America. The vote came just two days after New York elected a "tax-the-rich candidate" as mayor, underscoring public frustration with economic inequality. Some experts warn the deal sets a precedent for excessive executive compensation, while supporters view Musk as essential to Tesla's transformation from near-bankruptcy to a trillion-dollar company.
Note: This article was created with Artificial Intelligence (AI).
