Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
At Tesla's annual shareholder meeting, shareholders approved an extraordinary pay package for Elon Musk, passing it with 75% of the vote, according to preliminary results announced on November 6, 2025.
The package is conditional: Musk will receive no salary but could unlock Tesla stock valued at around one trillion dollars if the company meets specific performance targets within the next decade.
Performance Targets Include Market Capitalization Growth
One major target requires Musk to increase Tesla's market capitalization from about $1.5 trillion today to over $8.5 trillion. For context, Nvidia, the world’s most valuable company currently boosted by the AI boom, is worth $4.83 trillion.
Comparison to Nvidia’s CEO Compensation
- Nvidia’s CEO earns $50 million annually and owns 3.5% of the company.
- Musk’s wealth stands at approximately $460 billion, largely due to Tesla’s stock price, which is about $465 per share—over 400 times its value at the 2010 IPO.
Previous Compensation Controversy
Musk’s earlier pay package, valued at $55.8 billion, faced legal challenges after a judge ruled that Tesla’s board had been too close to him when designing it.
Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.
Musk would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade.
Author's summary: Tesla shareholders have endorsed a pay plan that could reward Elon Musk with Tesla stock worth up to one trillion dollars, contingent on significant company growth targets.