Key Points
- Tesla shareholders approved a pay package for CEO Elon Musk that could be worth up to $1 trillion.
- The approval came from over 75% of the shares voted, excluding Musk’s own stake.
- The payout is tied to Tesla reaching a series of ambitious market value and operational milestones over the next 10 years.
- Musk’s focus is shifting from electric vehicles to AI, robotaxis, and humanoid robots, which he claims will be a massive future business.
Tesla shareholders approved a pay package on Thursday that could make CEO Elon Musk the world’s first trillionaire. Musk is already the richest person on the planet.
During the company’s annual shareholder meeting, Tesla announced that over 75% of shares voted in favor of the pay deal. This vote did not include the 15% of the company that Musk himself owns. The crowd at the meeting erupted in cheers and chants when the results were announced, and Musk quickly thanked the shareholders and the board.
Musk doesn’t receive a salary; this pay package is a stock grant that could give him up to 423.7 million additional Tesla shares over the next 10 years. These shares could be worth about $1 trillion, but only if the company reaches an $8.5 trillion market capitalization and a series of ambitious operational and financial goals.
For Tesla to reach that massive market value, its stock would need to jump 466% from its current price. That’s also about 70% higher than the world’s most valuable company, Nvidia, which recently hit a market cap of $5 trillion.
A rejection of the pay package could have led to Musk stepping down as CEO. Tesla’s board had previously stated that Musk had mentioned stepping down if he didn’t get the control this pay package would provide.
Despite the approval, Tesla has had a tough year, with sales and profits falling in the first half. However, Musk and other executives are shifting the company’s focus from just selling electric vehicles to developing self-driving cars, a fleet of “robotaxis,” and even humanoid robots.
In his speech to shareholders, Musk spoke more about the company’s future robots than its current cars. He claimed that the robot business would be bigger than anything else, even cell phones. He predicted that these robots, which could be produced for around $20,000 each, could replace surgeons and reshape the global economy.
These products are still in development, so even with the pay package approved, it’s not guaranteed that Musk will ever receive the full payout. He will need to solve the company’s current challenges and deliver on his bold promises for the future. Musk has maintained that he needs the additional shares for more control over the company, not just for the immense wealth.
