In a decisive move that could shape Tesla's future for the next decade, shareholders of the electric vehicle giant have overwhelmingly approved CEO Elon Musk's monumental $1 trillion compensation package. The landmark decision came during a shareholder meeting held on November 6, marking a significant victory for the controversial billionaire.
Overwhelming Shareholder Support
Exactly 75% of Tesla shareholders voted in favor of the compensation package that was initially proposed in September this year. The resounding approval demonstrates strong confidence in Musk's leadership despite the enormous scale of the potential payout.
The compensation package will now move toward finalization through a Securities and Exchange Commission (SEC) filing in the coming days, cementing what could become one of the largest executive pay deals in corporate history.
Industry Leaders Rally Behind Musk
Among the prominent voices celebrating the approval was Michael Dell, CEO of Dell Technologies, who took to X (formerly Twitter) to congratulate Musk. Dell emphasized the significance of the 75% majority vote, calling it "quite a decisive statement by Tesla shareholders."
This wasn't the first time Dell expressed support for Musk's compensation package. Earlier this month, he had actively campaigned for shareholder approval, arguing that the award structure protects Tesla's interests while motivating exceptional performance.
In his earlier post, Dell explained the conditional nature of the package: "The award is only achieved IF he hits exceptionally ambitious market-cap and operational milestones—if he falls short, he gets nothing. If he succeeds, shareholders will win big through unprecedented value creation."
Ambitious Performance Targets Ahead
The approved compensation package consists of 12 separate stock grants that Musk will only receive if Tesla achieves specific, extraordinarily ambitious performance targets over the next ten years. These requirements represent some of the most challenging corporate goals ever set.
The key performance targets include:
- Increasing Tesla's market capitalization from its current $1.5 trillion to $8.5 trillion
- Deploying 1 million robotaxis into service
- Selling 12 million additional vehicles
- Achieving 10 million Full Self-Driving (FSD) subscriptions
- Producing 1 million humanoid robots
Tesla's board had vigorously defended the massive payout package, warning that failure to approve it could risk losing Musk to other ventures. The board positioned the deal as essential for securing the CEO's long-term commitment to Tesla's transformation into a leader in artificial intelligence and robotics.
The approval grants Musk substantial influence over Tesla's future direction while aligning his financial interests with shareholder value creation through these unprecedented operational and market milestones.
