BREAKING: Elon Musk Becomes World’s 1st Trillionaire As Tesla Shareholders Approve Giant Pay Package?
In an era of skyrocketing CEO pay, Tesla shareholders overwhelmingly approved a $1 trillion pay package intended to keep Elon Musk in charge of the company for the next decade, as the automaker enters a new phase defined by bets on artificial intelligence.
The measure had met unusual resistance from investors, advisers and activists who argued it was excessive or unmerited, pointing to Musk’s recent track record of work outside Tesla — including his time overseeing the U.S. DOGE Service — some of which has hurt the brand.
But Musk also presided over historic gains, turning the company into the world’s most valuable automaker and becoming the world’s richest person.
At Tesla’s annual shareholder meeting held in Austin, Texas, more than 75% of participating investors voted in favor of the deal, excluding the 15% stake Musk already owns. As the results were announced, the crowd erupted in applause and chants, with Musk thanking both the board and investors. “I super appreciate it,” he said, visibly pleased by the overwhelming support.
Under the new compensation plan, Musk will not receive a traditional salary. Instead, he is entitled to up to 423.7 million Tesla shares over the next decade, contingent upon achieving an aggressive set of performance goals. If Tesla reaches a staggering market capitalization of $8.5 trillion, those shares could be worth over $1 trillion, cementing Musk’s place as the first person in history to reach trillionaire status.
However, this target represents a monumental challenge. Tesla’s stock would need to soar by nearly 466% from its current value — surpassing even Nvidia, which recently became the world’s most valuable company with a $5 trillion valuation.
Despite Tesla’s recent hurdles — including slowing sales, profit drops, and reduced U.S. government subsidies for electric vehicles — shareholders appear confident in Musk’s long-term vision. The board argued that rejecting the pay deal could push Musk away from Tesla to focus on his other ventures, such as SpaceX and xAI.
Tesla Chair Robyn Denholm emphasized this risk in a letter to investors, warning that without the package, the company could lose Musk’s “time, talent, and vision,” which she described as critical to Tesla’s success.
Meanwhile, Norway’s sovereign wealth fund, one of Tesla’s largest institutional investors, voiced opposition, citing concerns about “the total size of the award” and its potential dilution effect. Proxy advisory firms Glass Lewis and ISS also recommended against the proposal, arguing it lacked adequate safeguards for shareholders.
Still, Musk’s supporters point to his track record. Under his leadership, Tesla transformed from a struggling EV startup into a global market leader and one of the world’s most valuable brands. Musk maintains that the package isn’t about personal wealth but about securing enough voting power to ensure strategic control.
“It’s not like I’m going to go spend the money,” he told investors during an earlier call. “There needs to be enough voting control to give me a strong influence — but not so much that I can’t be fired if I go insane.”
At the meeting, Musk shifted the conversation from cars to the future of AI and robotics, revealing Tesla’s next big ambition: humanoid robots and self-driving “robotaxis.” He boldly predicted that Tesla’s robot business could eventually outgrow its car division and even “end global poverty.”
“The robot will be the biggest product of all time — bigger than phones, bigger than anything,” he declared. Musk estimates that each robot could be built for $20,000, making them as affordable as a family car.
While these futuristic promises remain in development, Musk’s trillion-dollar pay deal represents both an extraordinary bet on Tesla’s future and a defining moment in corporate history. Whether this move creates a trillionaire or exposes Tesla to new financial risks will depend entirely on Musk’s ability to turn his science fiction dreams into economic reality.
