In a decisive move that underscores immense confidence in its visionary leader, Tesla shareholders have overwhelmingly ratified a new compensation plan for CEO Elon Musk, a package with a potential value soaring near $1 trillion.
The approval, announced at the company’s annual meeting in Austin, Texas, saw approximately 75% of voting shares cast in favor, effectively reinstating a massive award previously rescinded by a Delaware court.
This resounding endorsement ties Musk’s future wealth directly to Tesla’s ability to achieve a set of staggering operational and financial milestones that would catapult the company into uncharted economic territory.
The compensation package is structured around a series of ambitious performance hurdles. For Musk to fully vest in the award, Tesla must not only revolutionize its production and service offerings—such as delivering its 20 millionth vehicle, deploying a fleet of one million robotaxis, or selling one million Optimus humanoid robots—but also achieve a monumental leap in financial performance.
The company’s EBITDA, a key measure of profitability, would need to skyrocket from its current $16.6 billion to an unprecedented $400 billion. Each of these operational triumphs must be paired with a soaring market valuation, beginning with a climb to a $2 trillion market cap from its present $1.5 trillion.
Ultimately, the full realization of this historic payday is contingent upon Tesla reaching a market capitalization of $8.5 trillion, a figure that would make it one of the most valuable companies in history.
In a strategic move designed to ensure long-term leadership stability, the agreement includes provisions that effectively lock Musk into his role. The shares granted through this package confer immediate voting rights but are subject to a vesting period of at least 7.5 years, preventing Musk from liquidating the shares and departing the company in the near term.
This structure aligns the CEO’s financial incentives with the long-term horizon of patient shareholders, making his continued leadership integral to unlocking the award’s full value.
