Tesla shareholders have officially approved a jaw-dropping executive pay package for Elon Musk — one that could hand him nearly $1 trillion (88 lakh-crore rupees) in stock over the next decade. The vote, held on Thursday afternoon, clears the way for the world’s richest man to receive the largest compensation deal in corporate history — but only if he meets a list of ambitious, some say audacious, performance targets.
The package depends on Tesla achieving milestones that would push its market value from roughly $1.4 trillion to $8.5 trillion — a more than 500% jump. Alongside that, Tesla is aiming to deliver 2 crore vehicles, deploy 1 million robotaxis, and produce 1 million humanoid robots over the coming years.
In a letter to shareholders earlier, Tesla’s board argued that Musk remains the company’s defining force. “While we believe Elon is the only person capable of leading Tesla at this critical inflection point, changing the world is neither an overnight process nor the work of a single person,” the board wrote, adding that the new plan aims to “secure the team and strategy” needed to achieve what many may see as impossible.
If the targets are met, Musk’s ownership stake in Tesla could jump from around 13% to nearly 29%, giving him a far stronger grip on the company. “Having voting control in the mid-20s gives a strong influence, but shareholders can still fire me if I go insane,” Musk quipped during an earnings call last month.
Despite the staggering figures, Musk insists the deal isn’t about cashing out. “It’s called compensation, but it’s not like I’m going to go spend the money,” he said. “It’s just — if we build this robot army, do I at least have strong influence over it? I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.
Tesla’s stock had tumbled 43% between January and March, during a period when Musk was focused on his newly created Department of Government Efficiency (DOGE). Since stepping back, the stock has clawed back some ground and is now up 16% for the year.
Still, concerns linger about whether Musk can juggle his growing list of ventures while keeping Tesla competitive in an increasingly crowded EV market.
For many investors, the new deal is as much about keeping Musk focused as it is about rewarding him. Ron Baron, founder and CEO of Baron Capital, which holds a 0.39% stake in Tesla, wrote on X that he backed the proposal wholeheartedly. “Elon is the ultimate ‘key man’ of key man risk,” Baron said. “Without his relentless drive and uncompromising standards, there would be no Tesla.”
It’s a sentiment echoed by several long-term shareholders who believe Musk’s vision — part innovation, part obsession — is still Tesla’s biggest asset. Whether those ambitions can power Tesla toward an $8.5 trillion valuation remains to be seen, but for now, shareholders seem ready to place their bet on him — once again.