Tesla Shareholders Approve Elon Musk's Historic Pay Package
Tesla shareholders have approved an extraordinary pay package for Elon Musk that could grant him stock worth around one trillion dollars. This decision was made at Tesla's annual shareholder meeting with approximately 75% of votes in favor, according to preliminary results announced on November 6, 2025.
Details of the Pay Package
The package is performance-based and Musk will receive no salary. Instead, he will unlock a massive stock award if Tesla achieves specific milestones within the coming decade. One key target requires increasing Tesla's market capitalization from about $1.5 trillion today to over $8.5 trillion.
Comparisons and Context
- For reference, Nvidia, the world’s most valuable company driven by the AI boom, is valued at $4.83 trillion.
- Nvidia's CEO earns $50 million annually and owns 3.5% of the company.
- Musk’s current net worth is estimated at roughly $460 billion, according to the Bloomberg Billionaires Index.
- Tesla's stock price, currently around $465 per share, is more than 400 times its value at the company’s 2010 IPO.
Legacy Compensation Issues
Musk’s previous pay package, valued at $55.8 billion, faced legal challenges after a court ruled that Tesla’s board was too close to Musk in structuring the deal.
Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.
Musk would earn no salary, but would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade.
Author's Summary
Elon Musk's new pay package tied to Tesla's ambitious growth goals could earn him stock valued at one trillion dollars, reflecting shareholders' confidence despite past controversies.