Tesla Shareholders Greenlight Historic US$1 Trillion Pay Package for CEO Elon Musk

Tesla Shareholders Approve ‘Ludicrous Mode’ Pay Deal for Elon Musk

Shareholders of Tesla have given their approval for Elon Musk’s extravagant pay deal, which could see the CEO earning up to US$1 trillion if specific targets are met. The compensation package, valued at A$1.54 trillion, was backed by over 75% of the vote, with Musk himself participating in the decision-making process due to his significant stake in the company.

The remuneration plan, similar to a previous US$56 billion incentive package, will be unlocked in phases upon the achievement of various milestones over the next decade. These milestones include reaching 20 million Tesla vehicles on the road, deploying 1 million self-driving taxis, and hitting valuation targets ranging from US$2 trillion to US$8.5 trillion.

Prior to the successful vote, Tesla’s chairperson Robyn Denholm cautioned that a rejection of the motion could lead Musk to reconsider his involvement with the company, viewing it as a negative reflection on his leadership.

In addition to his role as Tesla’s CEO, Musk also holds executive positions at SpaceX and xAI, an artificial intelligence firm now in possession of X, the rebranded social media platform previously known as Twitter.

Throughout his career, Musk has been a polarizing figure, drawing attention for his controversial posts on X, an alleged incident involving a Nazi salute during President Trump’s 2025 inauguration, and his leadership of the Department of Government Efficiency (DOGE).

Future Focus on Artificial Intelligence and Robotics

Following the shareholder vote, Musk emphasized Tesla’s future direction towards artificial intelligence and robotics during the company’s annual general meeting. He highlighted the significance of Optimus, a forthcoming Tesla robot that he touted as the “biggest product of all time.” The company intends to unveil a third version prototype in 2026, with Musk envisioning the potential production of 100 million robots annually.

Tesla’s manufacturing capabilities at its Fremont, California and Austin, Texas facilities are aligned with this ambitious target, with projections indicating the capacity to build millions of robots per year.

Despite these grand plans, past promises from Musk, such as the introduction of one million self-driving taxis by 2020, have not materialized as anticipated. Delays have also plagued the launch of Tesla’s Semi truck, first revealed in 2017.

Focus on Electric Vehicles and Self-Driving Technology

While Tesla’s future envisions a shift towards robotics, the company’s present focus remains on electric vehicles. Musk anticipates a surge in production over the coming years, driven by the demand for Tesla’s self-driving technology.

The upcoming Cybercab, a two-door, two-seat vehicle set to enter production in April 2026, will join Tesla’s self-driving taxi fleet operating in select U.S. markets. Distinguished from current autonomous taxis based on the Model Y, the Cybercab will not feature a human monitor in the front seat, signaling a significant advancement in Tesla’s autonomous driving capabilities.

By the end of September, Tesla’s global sales had dipped by approximately 6%, totaling 1.22 million units. This placed the company in second position behind BYD, which experienced a 37% increase in sales to reach 1.61 million vehicles.

Elon Musk’s immense wealth solidifies his position as the wealthiest individual globally, with an estimated net worth of US$482 billion (A$742 billion), surpassing other prominent figures like Larry Ellison, Jeff Bezos, Larry Page, and Sergei Brin.

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