A Vote Like No Other
At Tesla’s annual meeting in Austin, shareholders handed Elon Musk something few executives have ever seen — approval for a pay package potentially worth nearly $1 trillion.
Seventy-five percent of votes were cast in favour, punctuated by cheers as Musk danced across the stage.
“What we’re about to embark upon is not merely a new chapter of Tesla, but a whole new book,” Musk declared to a roaring crowd.
The package, structured entirely in stock options, requires Musk to raise Tesla’s market value to $8.5 trillion — up from $1.4 trillion today — and to launch a million robotaxi vehicles into commercial service.
(Read more global leadership stories in our Business Insights section)
A Reward for Vision — or a Risk for Shareholders?
Tesla’s board argued that the deal was necessary to keep Musk engaged, warning the company could lose its driving force without it.
Yet critics questioned the scale and governance. Major institutional investors including Norway’s Sovereign Wealth Fund and CalPERS voted against the proposal, citing poor oversight and excessive concentration of power.
Still, Tesla’s large retail investor base pushed the deal through — a reflection of Musk’s celebrity status as much as his leadership.
(Compare with our analysis on Corporate Governance in the AI Era)
The Conditions Behind the Trillion
To unlock the full payout, Musk must:
- Grow Tesla’s market cap to $8.5 trillion
- Launch 1 million self-driving robotaxis
- Deliver breakthrough progress in AI and humanoid robots (“Optimus”)
- Sustain long-term profit and revenue targets
If successful, his ownership stake could exceed 20%, granting him de facto control over Tesla.
(Explore our deep dive on AI and Mental Health Across Cultures to see how tech visionaries reshape multiple industries.)
From Cars to Optimus — Musk’s New Obsession
While investors expected updates on Tesla’s EV sales, Musk spotlighted Optimus, the company’s humanoid robot project.
“Other shareholder meetings are snoozefests, but ours are bangers,” he joked, adding that the “new book” of Tesla begins with robotics.
That focus worried analysts like Gene Munster who wanted renewed attention to EV production.
AI Ambition and Safety Concerns
Musk hinted that Tesla’s Full Self-Driving (FSD) tech was nearing maturity, saying drivers were “almost comfortable texting and driving.”
But U.S. regulators are investigating FSD after multiple accidents linked to autopilot use.
Tech analyst Dan Ives of Wedbush Securities remains bullish:
“The march to an AI-driven valuation for TSLA has now begun.”
Financial Reality vs Public Perception
Tesla’s stock has risen 62% in six months, but sales growth lags amid competition and political polarisation.
Investor Ross Gerber of Gerber Kawasaki said his firm reduced its stake:
“Elon seems divorced from the reality that his public opinion is so low.”
(For market context, see our latest Global Economic Pulse Report)
Legal Shadows and Governance Debate
A similar 2018 pay package was struck down by a Delaware judge over board conflicts.
Since then, Tesla has reincorporated in Texas, and the Delaware Supreme Court is reviewing the case.
Legal expert Ann Lipton of the University of Colorado notes that the new agreement again places no limits on Musk’s activities outside Tesla.
A Symbol of Modern Capitalism
For Musk’s supporters, this package rewards visionary risk-taking. For critics, it epitomises the age of the cult CEO.
Either way, the vote underscores how personality, technology and capital are intertwined in today’s markets.
(Discover similar stories in our Tech & Innovation section)
Written by the Global In Brief Business Desk
Examining how leadership, technology and capital shape the new economy.