Tesla shareholders have voted to approve a potentially trillion-dollar compensation package for CEO Elon Musk, which is set to be the largest executive payout in corporate history if all goals are met.
Key Details
Unprecedented Value: The package is potentially valued at up to $1 trillion (approx. 83 lakh crore rupees) based on current calculations, though its final worth depends entirely on Tesla's stock performance.
Shareholder Support: The proposal was overwhelmingly approved by shareholders, with more than 75% of votes cast in favor at the company's annual meeting.
Stock-Based Grant: The compensation is not a traditional salary but is a performance-based stock grant. Musk will receive no salary or cash bonus.
The World's First Trillionaire: If Musk successfully achieves all the ambitious targets set by the board over the next decade, he could become the world's first trillionaire.
Ambitious Performance Goals (The Conditions)
To unlock the full amount of the stock options, the company must hit a series of extremely challenging financial and operational milestones, which include:
Market Capitalization: Boosting Tesla's market value from its current level to $8.5 trillion.
Vehicle Deliveries: Delivering 20 million Tesla electric vehicles.
Robotaxis & AI: Deploying 1 million robotaxis in commercial service and selling 1 million humanoid robots (Optimus).
Profitability: Reaching $400 billion in core profit for four consecutive quarters.
Why Shareholders Approved It
The approval signals that investors strongly support Musk's vision of transforming Tesla from just an electric vehicle company into an AI and Robotics powerhouse. The board and supporting shareholders argued that this massive incentive is necessary to keep Musk focused on Tesla and prevent him from dedicating his time and resources solely to his other ventures like SpaceX and xAI.