Tesla shareholders have approved a record remuneration package for CEO Elon Musk, with 75 per cent of votes cast in favour of the plan.
The deal, which could be worth up to US$1 trillion in Tesla shares, is designed to keep Musk at the helm for the next decade as the company seeks to expand its footprint in electric vehicles, AI, and robotics.
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The package, first proposed by Tesla’s board two months ago, links Musk’s potential payout to a series of ambitious targets. “Given the rapidly evolving market landscape, we must ensure that Tesla remains led by the visionary who built it,” said Robyn Denholm, chairwoman of Tesla’s board, at the company’s annual general meeting in Austin, Texas. She emphasized that Musk “would come away empty-handed if Tesla failed to achieve the targets set.”
The first of twelve share tranches will be triggered once Tesla reaches a US$2 trillion market valuation, up from its current US$1.4 trillion. Subsequent tranches are tied to further increases of US$500 billion, culminating in a goal of US$8.5 trillion within ten years.
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In addition to market value, milestones include 20 million vehicle deliveries, ten million active FSD subscriptions, one million robots, and one million robotaxis in operation. Musk must also remain in Tesla’s executive leadership for the full duration. “I’m driven by the desire to increase my stake in Tesla to over 25 per cent,” Musk told shareholders, adding that this would expand his influence in shaping Tesla’s future.
During the meeting, Musk outlined Tesla’s next phase of development, calling it a “whole new chapter” that will transform the company into a leading AI and robotics enterprise. He revealed plans for a massive ‘Terra Factory’ to produce AI chips, noting that Tesla may collaborate with Intel. “We haven’t signed any deal, but it’s probably worth having discussions with Intel,” Musk said to applause.
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He also confirmed that production of the Cybercab robotaxi will begin in April, large-scale manufacturing of the Semi truck will start next year with improved efficiency, and the new Roadster sports car will debut on April 1, entering production within 12 to 18 months.
