Tesla Shareholders Approve $1 Trillion Compensation Plan for Elon Musk Amid Mixed Investor Sentiment
Tesla shareholders have approved a $1 trillion compensation plan for CEO Elon Musk, potentially making him the world's first trillionaire if specific company milestones are met. The plan could represent the largest corporate payout in history, contingent on Tesla increasing its market value from around $1.4 trillion to $8.5 trillion. Currently, Musk holds approximately a 12.5% stake in the company, with a fortune valued at about $461 billion.
The milestones tied to Musk's compensation include delivering 20 million vehicles, providing 10 million self-driving car subscriptions, producing 1 million humanoid robots, and deploying 1 million robotaxis. Tesla shares have risen about two-thirds since May 2025, boosted by third-quarter deliveries surpassing estimates, partly driven by US electric vehicle tax credits. However, European sales have lagged behind.
US investors remain willing to back high-flying innovators like Musk, seeing him as a central figure in Tesla's growth, despite concerns. Analysts question whether Tesla's core automotive business has peaked and note that the company's autonomous vehicle plans may not be market-leading. Brand risks affecting Tesla's image and sales include Musk's political activism, his association with former President Trump, and reports of controversial behavior. These factors have prompted some unease about potential damage to the brand.
