UPDATE: Tesla shareholders have just approved a groundbreaking compensation package that could propel CEO Elon Musk to become the world’s first trillionaire. On October 6, an overwhelming 75% of shareholders voted in favor of the astonishing $1 trillion pay plan, according to reports from CNBC and Business Insider.
This ambitious package ties Musk’s potential earnings to several rigorous performance milestones that must be met by 2035. To secure the full payout, Musk is tasked with boosting Tesla’s market capitalization to an unprecedented $8.5 trillion, selling 12 million vehicles annually, and deploying 1 million robotaxis and 1 million humanoid robots, Business Insider has revealed.
During Tesla’s annual meeting held in Austin, Texas, Musk expressed his gratitude to shareholders for their support. “I super appreciate it. Thank you, everyone,” he stated. “What we’re about to embark upon is not merely a new chapter on the future of Tesla but a whole new book.”
Despite the overwhelming approval, the vote followed months of heated discussions among investors. Notably, Norway’s sovereign wealth fund, managed by Norges Bank Investment Management, opposed the package due to concerns over dilution and the reliance on Musk’s leadership. In their statement, they expressed, “While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk.”
Nonetheless, the majority vote signals strong investor confidence in Musk’s capacity to lead Tesla into a transformative era. Currently, Musk’s net worth stands at approximately $461 billion, according to the Bloomberg Billionaires Index.
This vote arrives amid increasing scrutiny surrounding Musk’s political engagements and leadership style. Earlier this year, protests erupted outside Tesla showrooms in response to his involvement in President Donald Trump’s Department of Government Efficiency and his recent budget proposals.
WHAT’S NEXT: As the dust settles on this monumental decision, all eyes will be on Musk and Tesla to see if they can meet the ambitious targets laid out in this new compensation package. Investors and industry watchers alike will be monitoring the company’s performance closely, making this a pivotal moment not just for Tesla, but for the entire automotive and technology sectors.
Stay tuned for more updates as this story develops. The ramifications of this approval could redefine executive compensation and corporate governance in the years to come.
