In a landmark decision that has captured global attention, Tesla shareholders have given their conditional approval to a compensation package for CEO Elon Musk that could be worth a staggering $1 trillion over the next decade. The approval, granted on 10 November 2025, comes after Musk had hinted at potentially stepping down from his position if his stake in the electric vehicle giant was not increased.
The Staggering Conditions for Payment
The monumental pay package is not a simple handout. It is tied to a series of exceptionally ambitious performance milestones that Tesla must hit for Musk to receive the full compensation. The company's board has set targets that include Tesla delivering 20 million vehicles and producing 1 million robotaxis and 1 million robots. Furthermore, the most formidable condition requires Tesla's market valuation to skyrocket to $8.5 trillion from its current valuation of approximately $1.4 trillion.
This structure means the money will only roll in if Musk delivers on these unprecedented goals. If achieved, the rise in company value would benefit all shareholders, not just the CEO, making the package a high-stakes bet on Tesla's future growth.
The Uphill Battle Ahead for Musk and Tesla
Despite the shareholder vote of confidence, the road ahead for Elon Musk is fraught with challenges. The electric vehicle market is becoming increasingly competitive, with Chinese competitors presenting a formidable challenge. These companies are not only competing on price but are also matching American technology, particularly in the field of artificial intelligence, step-for-step.
Adding to the pressure is Musk's own recent track record, which has been described as underwhelming. This was partly attributed to his political engagements, from which he has since withdrawn. The combination of steep internal targets and intense external competition stacks the odds unfavourably for the CEO.
A Shareholder Mandate Amidst Skepticism
The approval, supported by 75% of the voting shareholders, appears to be a strategic move to retain Musk's leadership. The fear of a potential loss in market value should Musk have followed through on his hint to leave likely influenced the decision. The message from investors is clear: they believe Elon Musk is the person most capable of navigating Tesla through this challenging period and achieving the monumental goals set before him. The coming years will be a true test of whether that faith is well-placed.
