Tesla Shareholders Approve Elon Musk’s Record $1 Trillion Pay Package Amid Controversy
Tesla shareholders have officially approved CEO Elon Musk’s record-breaking $1 trillion pay package, solidifying his position as one of the most powerful figures in global business. The deal, backed by roughly 75% of investors, was announced during the company’s annual general meeting in Austin, Texas, and marks the largest compensation agreement in corporate history. The approval sparked applause from attendees as Musk celebrated on stage, dancing to chants of his name and promising a “new book” in Tesla’s future.
The package, which ties Musk’s rewards to ambitious performance goals, could grant him hundreds of millions of new Tesla shares if the company’s market value climbs from $1.4 trillion to $8.5 trillion over the next decade. Additional targets include launching a fleet of one million self-driving Robotaxis—a milestone Musk believes will redefine Tesla’s place in the global tech and mobility industry. The billionaire also highlighted progress on the company’s humanoid robot, Optimus, signaling his growing focus on artificial intelligence.
However, the record payout has drawn sharp criticism from investors and analysts who question both the feasibility and ethics of such a massive compensation plan. Critics argue that Musk’s polarizing persona and recent controversies have hurt Tesla’s reputation and brand value. “Elon seems to be divorced from the reality that his opinion among the public is so low,” said Ross Gerber, CEO of investment firm Gerber Kawasaki, which recently reduced its Tesla holdings. Some major institutional investors—including Norway’s sovereign wealth fund and CalPERS—rejected the proposal outright.
Despite the skepticism, many shareholders still view Musk as Tesla’s greatest asset and visionary leader. Long-time analyst Dan Ives of Wedbush Securities said the approval could mark the beginning of a new phase for the company, one driven by artificial intelligence and autonomous technology. “We continue to believe that the AI valuation is getting unlocked,” Ives wrote in a note following the vote, suggesting that Tesla’s focus on automation could boost its market appeal in the coming year.
Tesla’s challenges, however, remain substantial. The company continues to face regulatory scrutiny over its Full Self-Driving software, declining EV sales, and mounting competition in the robotaxi and humanoid robotics markets. While Musk’s unprecedented pay deal reinforces his dominance at Tesla, it also raises a pressing question for investors: can the world’s richest man deliver on his trillion-dollar promise?
source: captialfm