Tesla Shareholders Approve Record Pay Package for Elon Musk
Kathmandu, Nov. 7 — Tesla shareholders have approved a groundbreaking pay package for CEO Elon Musk, which could potentially reach nearly $1 billion, according to reports. The decision was made during the company’s annual meeting in Austin, Texas, where approximately 75% of votes supported the plan. The event saw Musk receiving enthusiastic applause and later dancing on stage as attendees chanted his name.
The compensation deal is tied to ambitious performance goals set by Tesla. These include increasing the company’s market value from around $1.4 trillion to $8.5 trillion over the next decade and deploying one million self-driving Robotaxi vehicles. If these targets are met, Musk would be awarded hundreds of millions of new shares. While some critics have labeled the package excessive, Tesla’s board has defended it, arguing that Musk might leave the company without such incentives and that his leadership is crucial for Tesla’s future.
During the meeting, Musk described the moment as the beginning of “a whole new book” for Tesla. He emphasized the company’s humanoid robot, Optimus, rather than its core car business. This focus on robotics disappointed some analysts. Gene Munster of Deepwater Asset Management noted on X that Musk’s remarks revealed “where his head is at,” highlighting the lack of mention of Tesla’s electric cars or the Robotaxi program.
Later, Musk claimed that the firm was “almost comfortable” allowing drivers to “text and drive essentially” using its Full Self-Driving (FSD) software. The BBC reported that U.S. regulators are currently investigating Tesla’s self-driving technology following several crashes involving vehicles that ran red lights or veered into oncoming traffic.
Tesla shares experienced a slight increase in after-hours trading and have risen more than 60% over the past six months. However, sales have seen a decline amid Musk’s public association with former U.S. President Donald Trump. Dan Ives of Wedbush Securities told the BBC that Musk remains “Tesla’s biggest asset,” predicting that the firm’s valuation will increasingly depend on advances in artificial intelligence.
Musk, who already holds a 13% stake in Tesla as its largest shareholder, had previously secured a multibillion-dollar compensation deal that was later overturned by a Delaware judge. The judge ruled that the board was too close to Musk. Since then, Tesla has moved its incorporation from Delaware to Texas, while the Delaware Supreme Court continues to review the earlier decision.
Despite opposition from major institutional investors, including Norway’s sovereign wealth fund and California’s CalPERS, retail shareholders strongly supported Musk’s pay package. The BBC reported that Tesla’s board members, including chair Robyn Denholm, actively campaigned for its approval. They even released a promotional video praising Musk’s leadership ahead of the vote.