UPDATE: Tesla shareholders have just approved a staggering $1 trillion pay package for CEO Elon Musk, a decision that could catapult him to becoming the world’s first trillionaire. This critical vote, occurring on November 6, 2025, at the company’s headquarters in Austin, Texas, saw over 75 percent of shareholders backing the plan amidst rising concerns over Musk’s management and the company’s faltering sales.
The approval comes after weeks of intense debate regarding Musk’s leadership as Tesla faces declining market share and profits. Just days before the vote, reports indicated Tesla’s car sales had plummeted, including a shocking 50 percent drop in Germany. Despite these challenges, Musk remains a polarizing figure, with many investors still viewing him as a transformative leader capable of revitalizing the company.
In the wake of this vote, Tesla shares rose 1.5 percent in after-hours trading, reaching $447.27. This uptick reflects investor optimism, even as Musk had threatened to leave the company, a move that sent shockwaves through the market.
The approved pay package is linked to ambitious performance targets, requiring Musk to increase Tesla’s market value nearly sixfold over the next decade and deliver a staggering 20 million electric vehicles. Additionally, he must deploy over 1 million robotic assistants, which he refers to as a ‘robot army,’ in both work and home environments.
“Fantastic group of shareholders,” Musk declared after the vote, urging, “Hang on to your Tesla stock.”
Despite the strong approval, the decision has not been without controversy. Major funds, including the California Public Employees’ Retirement System and Norway’s sovereign wealth fund, opposed the package. Critics have labeled it excessive, expressing concern over Musk’s recent behavior and the board’s closeness to him. Musk himself referred to dissenting voices as “corporate terrorists” at a recent meeting.
Supporters argue that such an incentive is vital for Musk to focus on Tesla’s growth trajectory, particularly as the company pivots towards becoming a leader in AI-driven technology and autonomous driving. The stakes are high as investors grapple with the potential risks and rewards of Musk’s ambitious vision.
The implications of this vote extend beyond Tesla, as it highlights the ongoing debate around executive compensation and corporate governance. Musk’s ascent to trillionaire status hinges on achieving these bold targets, which could redefine wealth in the modern age.
As Tesla moves forward, all eyes will be on Musk to see if he can fulfill the promises that led shareholders to back this unprecedented pay deal. Investors are now left wondering: Can Musk deliver on his ambitious vision, or will the company falter under the weight of his lofty goals?
This urgent decision marks a pivotal moment for Tesla and its future direction, making it essential for stakeholders and market watchers to stay closely tuned to developments in the coming months.
