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Elon Musk Wins Shareholder Approval for Record $1 Trillion Tesla Pay Plan

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Elon Musk has secured shareholder approval for a record-breaking $1 trillion Tesla pay package, cementing his grip on the company as he pushes to transform the electric vehicle maker into a global leader in AI and robotics.

The plan received over 75% support during Tesla’s annual shareholder meeting in Austin, Texas, where Musk appeared on stage alongside dancing robots, calling the moment “a whole new book” in Tesla’s story.

The approved package could grant Musk up to $878 billion in stock over the next decade, contingent on ambitious performance milestones — including delivering 20 million vehicles, deploying 1 million robotaxis, and generating $400 billion in core profit. Tesla’s market value would need to climb from $1.5 trillion to $8.5 trillion for Musk to unlock the full payout.

The vote follows months of intense debate over Musk’s compensation and influence. The Tesla board warned that Musk could shift his focus to other ventures — such as SpaceX or his AI startup xAI — if shareholders rejected the plan.

“This isn’t just another chapter,” Musk said to cheering investors. “It’s the start of something entirely new.”

Critics, including Norway’s sovereign wealth fund and proxy advisory firms Glass Lewis and ISS, opposed the plan, citing governance concerns and the risk of excessive power consolidation. Yet supporters argued that tying compensation to Tesla’s market success aligns Musk’s incentives with shareholders’.

Shareholders also voted to invest in xAI, though analysts noted that many abstentions signaled caution over potential conflicts of interest.

The approval clears a major uncertainty clouding Tesla’s future and reinforces Musk’s position as both the visionary and lightning rod behind the company’s AI and robotics ambitions.

Tesla Board Warns Shareholders: Approve Musk’s Record Pay Deal—or Risk Losing Him

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Tesla’s board of directors has issued its starkest message yet to investors: approve CEO Elon Musk’s nearly $878 billion stock-based compensation package—or risk his departure and a potential collapse in Tesla’s market value. Shareholders are set to vote on Thursday in what is shaping up to be one of the most consequential corporate pay decisions in history.

The proposal ties Musk’s potential payout to Tesla reaching an $8.5 trillion market capitalization over the next decade, a goal that would make him the first CEO in history to earn close to $1 trillion. Even if he falls short of some milestones, Musk would still collect tens of billions in stock awards.

Supporters argue that Musk’s leadership and vision justify the extraordinary package, crediting him with transforming Tesla into a $1.5 trillion company that dominates the electric vehicle sector and is pivoting toward artificial intelligence, robotaxis, and humanoid robots. “If the stock goes up sixfold, I’ll make a fortune too,” said investor Nancy Tengler. “Why should I care what Musk makes if he delivers?”

Critics, however, see the deal as a governance nightmare. The California Public Employees’ Retirement System (CalPERS) and Norway’s sovereign wealth fund have both announced they will vote against it, citing the concentration of power and shareholder dilution. Corporate governance expert Charles Elson said the board was being “held over a barrel by a superstar CEO.”

Board Chair Robyn Denholm has defended the deal, warning shareholders that without Musk, Tesla could “lose significant value.” Harvard professor Krishna Palepu argued that the proposal aligns Musk’s interests with shareholders, as he must achieve substantial growth before collecting the payout.

The outcome may hinge on Musk’s own 15% stake, which Texas law allows him to vote—unlike under Tesla’s prior Delaware incorporation. Critics say this, along with Texas’ new litigation rules that make it harder for investors to sue, stacks the deck in Musk’s favor.

“The board is facing a classic holdup,” said Cornell law professor Charles Whitehead. “They’ve bet the company on one man—and have no plan if he walks away.”

Norway’s $2.1 Trillion Wealth Fund to Vote Against Elon Musk’s $1 Trillion Tesla Pay Deal

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Norway’s sovereign wealth fund, the world’s largest, announced Tuesday that it will vote against Tesla CEO Elon Musk’s proposed $1 trillion compensation package — potentially the largest CEO pay deal in corporate history. The vote will take place at Tesla’s annual general meeting on November 6.

Tesla’s board is urging shareholders to approve the plan, warning that rejecting it could prompt Musk to leave the $1.5 trillion automaker. The proposal, however, has drawn criticism from investors and proxy advisory firms who say the package is excessive and could give Musk disproportionate control.

The Norwegian fund, officially known as Norges Bank Investment Management (NBIM), said while it recognizes the “significant value created” under Musk’s leadership, it is concerned about the award’s overall size, potential shareholder dilution, and Tesla’s heavy reliance on Musk’s role. NBIM also confirmed it would vote against Tesla’s general employee compensation plan and two of three board members up for re-election, including Kathleen Wilson-Thompson and Ira Ehrenpreis.

Musk’s proposed deal would grant him stock awards worth up to $1 trillion over 10 years, though Reuters estimates the actual value after cost deductions could total around $878 billion. The package would only fully vest if Tesla’s market value climbs to $8.5 trillion — roughly six times its current valuation.

Despite opposition from major investors, the pay deal is expected to pass due to broad shareholder support and Musk’s own 13.5% voting stake.