The Tesla shareholders’ meeting approved a $1 trillion remuneration package for the company’s co-founder and CEO, Elon Musk. The voting results were announced at the Tesla shareholders’ meeting. More than 75% of shareholders voted for the payment.
In September, the Tesla board of directors offered Musk the largest ever remuneration package of almost $1 trillion. The plan stipulates that the billionaire will own about 25% of the shares of the automaker (currently he has about 13%). To receive this bonus in full, Musk must achieve several goals in ten years, including expanding Tesla’s growing robotaxi business and increasing the company’s market value to at least $8.5 trillion.
At the same time, the council set a condition: if Musk does not achieve his goals, he will receive nothing.
Chairman of the Board of Directors of Tesla Robyn Denholm had previously warned shareholders that Musk could leave the company if they did not approve the compensation package offered to him.
Even before the meeting, it became known that among the major shareholders of Tesla there are those who oppose the payment of such a large sum to Musk. For example, this proposal was rejected by the Norwegian State Welfare Fund, which owns 1.2% of Tesla shares.
Other opponents of this payment included the California Public Employee Retirement System (CalPERS). According to Bloomberg, the pension fund owns approximately 5 million Tesla shares; the American Federation of Teachers is the country’s second largest teachers’ union; the New York State Pension Fund, which owns more than 35 million Tesla shares worth about $1.7 billion.
The Tesla board of directors had previously noted that this record-breaking reward was necessary for Musk to remain focused and motivated. At the same time, opponents of the bonus claim that, being the largest shareholder of Tesla, Musk already has sufficient motivation, and bonuses can dilute the company’s share capital and create management risks.
Musk himself has repeatedly stated that he would like to have more shares of Tesla, which would ensure that he retains sufficient control over the company. During a call with analysts on the results for the third quarter of 2025, Musk mentioned this issue again. The businessman noted that the company’s preparations for the mass production of robots and the expansion of the robotaxi network in the United States require his participation. He also added that he wants to be sure that at some point he will not lose control of Tesla due to the insufficient number of shares in his possession.
In August of this year, Tesla sent Musk 96 million shares worth about $29 billion. They were given as a bonus as part of the 2019 motivation package (the Company’s 2019 Equity Incentive Plan). Musk will receive bonuses provided that he continues to work as CEO or executive director responsible for product development or operations until 2027.