Tesla investors have voted to approve CEO Elon Musk’s massive $1 trillion pay deal, giving the billionaire a stronger hold on the company and showing fresh confidence in his leadership.
Tesla Chair Robyn Denholm announced that about 75% of shareholders supported the package during the company’s annual meeting on Thursday at its Texas gigafactory.
The deal is made up entirely of stock options and could boost Musk’s ownership in Tesla by up to 12% if the company meets a set of ambitious targets.
To unlock the full payout, Tesla must grow its market value to $8.5 trillion, raise annual profits to $400 billion, and expand into areas like robotics and self-driving technology.
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“Musk has proven time and again that he can achieve the improbable,” Denholm said, stressing that keeping him fully focused was key as Tesla moves beyond car manufacturing into artificial intelligence and automation.
Top investors such as Ron Baron and Cathie Wood backed the plan. “The payoff may look extreme,” Baron said, “but so are the results Tesla has delivered under Musk’s vision.”
Not everyone agreed. Norway’s $2.1 trillion sovereign wealth fund, one of Tesla’s biggest investors, voted against the package, saying it was too large and risky. Proxy advisers ISS and Glass Lewis also opposed it, calling it excessive and lacking safeguards to ensure Musk stays focused on Tesla while managing his other ventures.
Still, Musk’s warning that he might reduce his involvement if the plan was rejected seemed to sway many shareholders. His leadership remains central to Tesla’s success and appeal.