Tesla shareholders have overwhelmingly approved an unprecedented pay package up to $1trillion for Chief Executive Officer (CEO) Elon Musk.
According to an Agence France-Presse (AFP) report, the stakeholders gave their approval on Thursday, reaffirming their confidence in the billionaire entrepreneur despite controversies surrounding his leadership and politics.
The compensation plan was designed to ensure Musk’s continued leadership as Tesla advances in artificial intelligence (AI), robotics, and autonomous driving.
The approval received more than 75 per cent shareholder support, according to a company official who announced the result during Tesla’s annual meeting at its Austin Gigafactory.
“I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes,” Musk said to loud applause and chants of “Elon!” from the audience. “I super-appreciate it.”
The overwhelming vote marks a major endorsement of Musk, who has become one of the most polarising figures in global business. Despite his outspoken political leanings — including vocal support for right-wing politicians such as US President Donald Trump — investors again signalled their faith in his ability to drive Tesla’s future growth.
The new package seeks to keep Musk at Tesla for at least seven and a half years. If fully realised, it would raise his stake in the company from about 12 per cent to more than 25 per cent, significantly increasing his control.
Musk has repeatedly said that Tesla’s potential was virtually limitless if it achieves breakthroughs in autonomous driving and AI. “Tesla will be the most valuable company in the world by far,” he declared earlier this year, predicting exponential growth tied to its self-driving and energy technologies.
At the same time, Musk has hinted he might step back from Tesla if his ownership share and influence are not sufficient. That concern formed a key part of the board’s argument for approving the plan.
Tesla Chair Robin Denholm told shareholders that retaining Musk was “essential to Tesla’s long-term success,” warning that the company’s stock could suffer a sharp decline if he were to exit.
“Our focus is on ensuring that Elon remains fully engaged at Tesla,” Denholm said, adding that his “visionary leadership” has been central to Tesla’s transformation into one of the world’s most valuable companies.
