Tesla Shareholders Approve Elon Musk’s $1 Trillion Pay Package
Tesla shareholders have strongly backed a new compensation plan for CEO Elon Musk, approving it with more than 75% of the vote. This package could be worth up to $1 trillion in company shares over the next decade, contingent on Tesla meeting specific operational and financial milestones.
Shareholder Response
When the approval was announced at Tesla’s Austin, Texas factory, shareholders cheered and chanted “Elon! Elon!” Musk, accompanied by dancing Optimus robots, described the moment as “not merely a new chapter of the future of Tesla, but a whole new book.”
Structure of the Compensation Plan
- The package is divided into 12 tranches.
- Each tranche corresponds to targets related to operations, adjusted profit, and market capitalization.
- Elon Musk will earn shares gradually as Tesla achieves these set goals.
Challenges and Expectations
Musk will not receive the full $1 trillion immediately. Instead, he can earn hundreds of billions in shares by helping Tesla meet ambitious, yet sometimes simplified, milestones. One key target is raising Tesla’s market value from approximately $1.5 trillion today to $8.5 trillion within ten years.
“What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.” — Elon Musk
This agreement reflects the continuing confidence shareholders have in Musk’s leadership and Tesla’s growth prospects.
Author’s summary: Tesla shareholders have overwhelmingly approved Elon Musk’s $1 trillion equity pay plan, tying his rewards to ambitious growth milestones over the next decade.