Tesla shareholders just made history, approving Elon Musk's eye-watering $1 trillion compensation package with over 75% support. The vote at Tesla's Austin factory ended with shareholders chanting "Elon! Elon!" as the results were announced, setting up the most ambitious executive pay structure ever attempted in corporate America.
Tesla shareholders just delivered Elon Musk the ultimate corporate vote of confidence. More than 75% approved his audacious $1 trillion compensation package Thursday at the company's Austin factory, with the crowd erupting in "Elon! Elon!" chants as results were announced. Flanked by dancing Optimus robots, Musk declared the moment "not merely a new chapter of the future of Tesla, but a whole new book."
The package represents the largest executive compensation deal in corporate history, but Musk won't see that trillion-dollar payday immediately. Instead, he'll earn it through 12 performance tranches covering operational milestones, adjusted profit targets, and market cap goals. Tesla, currently valued at $1.5 trillion, must reach an $8.5 trillion market capitalization within a decade for Musk to unlock the full package.
The vote followed an unprecedented two-month campaign that saw Tesla break its own marketing playbook. The company that famously doesn't advertise its cars ran television ads promoting the shareholder vote. Board chairwoman Robyn Denholm, typically media-shy, appeared in multiple major interviews and nearly lost her voice stumping for approval. "Tesla is at an inflection point - I think I've said that 3,000 times over the last few weeks," Denholm told investors Thursday.
Behind the massive numbers lies Musk's real motivation: control. He currently owns around 15% of Tesla but has repeatedly threatened to leave if he doesn't secure 25% voting control. That threshold would protect him from being ousted and maintain his grip on what he calls Tesla's "robot army." The compensation package offers the most direct path to that control without requiring additional stock purchases.
This isn't Musk's first rodeo with massive pay packages. His previous $56 billion deal from 2018 was struck down by Delaware's Chancery Court after a judge ruled Tesla wasn't transparent about the negotiation process. The company has appealed that decision while moving forward with this new structure.
Tesla already handed Musk earlier this year as interim compensation, though the company says it'll void that amount if it wins the Delaware appeal. The new package essentially replaces the blocked 2018 deal with even more ambitious targets.
