Shareholders voted to give Elon Musk a $1 trillion pay package on November 6, 2025, marking one of the largest executive compensation deals ever approved. Over 75% of Tesla shareholders supported the deal at the company’s annual meeting. The package includes 424 million shares split into 12 equal portions over ten years. Each portion requires Tesla to hit specific milestones involving market value and business performance targets.
The compensation structure ties directly to ambitious goals. Tesla’s market cap must reach $8.5 trillion for Musk to receive the full payout. That’s nearly six times higher than Tesla’s current $1.428 trillion valuation as of November 2025. Tesla would become the world’s most valuable company by a massive margin if it reaches that target. Currently, Tesla ranks tenth globally among public companies, alongside other major corporations like Apple which maintains a market cap of $3.138 trillion. Corporate watchdogs including Institutional Shareholder Services and Glass Lewis had recommended shareholders reject the plan before the vote. The board has structured the package to ensure all milestones must be passed for Musk to unlock the complete compensation.
The package also depends on producing results beyond just stock prices. Tesla must supply 20 million vehicles cumulatively within the decade. That’s more than double all the vehicles Tesla’s ever made since its founding. The company’s also facing tough competition and recent challenges. German market sales dropped 50%, showing the difficulty ahead. Tesla will need sustained growth throughout the ten-year period to meet this target. Board supporters argue the targets represent neither an overnight process but rather an achievable transformation with Musk’s leadership focused on Tesla.
Perhaps most ambitious is the robotics goal. Tesla must field 1 million Optimus humanoid robots in real-world settings. Currently, the company hasn’t produced any units ready for rollout. Musk calls this creating a functional “robot army.” These robots must reach mass production and widespread use within the timeframe. Tesla’s autonomous technology includes Full Self-Driving capabilities that require continuous driver supervision and regulatory approval for real-world deployment.
If Musk achieves all milestones, his Tesla ownership stake’ll increase from 13% to approximately 25-29%. That’d strengthen his voting power while staying below a controlling majority. His current net worth sits around $473 billion, meaning this package could potentially double his wealth.
Some stakeholders opposed the deal. Norway’s sovereign wealth fund voted against it, citing excessive size and dilution concerns. The CEO’s current estimated wealth potentially approaches the historical peak of John D. Rockefeller’s estimated fortune. Still, the overwhelming shareholder support moves forward with these extraordinary targets. Whether Tesla reaches these goals remains uncertain, but the approval signals shareholder confidence in Musk’s vision for the company’s future.