Tesla Shareholders Approve Elon Musk's Trillion-Dollar Compensation Plan: Pathway to Becoming World's First Trillionaire

Tesla shareholders have overwhelmingly endorsed CEO Elon Musk's stock-based compensation plan, which could potentially make him the world's first trillionaire if the company achieves its ambitious growth targets.

During Tesla's annual shareholder meeting on Thursday, more than 75% of shareholders voted to approve Musk's compensation package, excluding his existing 15% stake in the company. The announcement was met with enthusiastic cheers and chants from attendees.

"I super appreciate it," Musk expressed to shareholders following the vote, extending his gratitude to both them and Tesla's board for their support.

Unlike traditional CEO compensation structures, Musk does not receive a salary. Instead, his earnings come entirely through stock options. This newly approved package could grant him up to 423.7 million Tesla shares over the next decade, potentially worth around USD1 trillion if Tesla reaches a market value of USD 8.5 trillion.

To achieve this valuation target, Tesla's stock price would need to increase by 466% from its current level. Such growth would make the company more valuable than Nvidia, presently the world's largest company with a market capitalization of USD 5 trillion.

If Musk secures all 12 tranches of this stock award, his earnings would equate to approximately USD 275 million per day, making this the largest executive compensation package ever recorded.

Tesla's board had previously cautioned shareholders that rejecting the pay plan might lead Musk to depart from the company. In a regulatory filing, the board revealed that Musk had expressed concerns about continuing as CEO without the greater assurances of control that this compensation package could provide him.

Despite this shareholder approval, Tesla faces significant challenges this year. The company has experienced sharp declines in both sales and profits during 2025, amid slowing demand for electric vehicles and reduced government incentives for EV purchases in the United States.