Tesla shareholders have approved a record-breaking pay package for CEO Elon Musk, a move that could make him the world’s first trillionaire if the company meets its ambitious growth targets. At Thursday’s annual shareholder meeting of Tesla, more than 75 percent of shareholders backed Musk’s stock-based compensation plan, excluding the 15 percent stake he already holds.
The announcement sparked cheers and chants in the room, underscoring the massive package and Musk’s unmatched position in the world of billionaires. CNN quoted Musk as saying, “I super appreciate it,” to the shareholders after the vote, thanking them and Tesla’s board for their support.
Will Tesla’s pay package make Musk the First Trillionaire?
Notably, unlike most CEOs, Elon Musk does not take a regular salary. His pay comes entirely from stock options, and the new package could give him up to 423.7 million Tesla shares over the next ten years. If Tesla reaches a market value of USD 8.5 trillion, the payout could be worth around USD 1 trillion. Now to achieve this, Tesla’s stock would need to rise by 466 percent from its current level, making the company more valuable than Nvidia, currently the world’s largest company at USD 5 trillion. If Musk receives all 12 tranches of the stock award, he could earn USD 275 million per day, making it the biggest executive pay deal ever.
Reportedly, Tesla’s board had warned shareholders that rejecting the pay plan could prompt Musk to step out from the company. In a regulatory filing, the board stated that Musk had raised concerns about continuing as CEO without greater assurances of control that the pay package could grant him. Meanwhile, despite the approval, Tesla is going through a challenging year, as the company’s sales and profits have dropped sharply in 2025. This comes amid slower EV demand and reduced US government incentives for electric vehicles, as reported by CNN.
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