Elon Musk, the billionaire entrepreneur behind Tesla, SpaceX, and X (formerly Twitter), has secured one of the largest pay packages in corporate history — potentially worth nearly $1 trillion (£760 billion) — following a shareholder vote at Tesla’s annual general meeting in Austin, Texas.
The decision, approved by 75% of shareholders, marks a resounding show of support for Musk despite mounting controversy around his leadership style, public persona, and Tesla’s mixed financial performance.
Tesla Shareholders Back Musk in Record-Breaking Deal
The newly approved pay package would grant Musk hundreds of millions of Tesla shares over the next decade — but only if he achieves a set of ambitious milestones. To unlock the full amount, Musk must raise Tesla’s market value from roughly $1.4 trillion to $8.5 trillion and successfully launch a million self-driving Robotaxi vehicles into commercial operation.
These targets are seen as exceptionally aggressive, but supporters argue they align Musk’s compensation with Tesla’s growth potential in artificial intelligence and robotics. The company’s board defended the payout, warning that failing to reward Musk could risk losing him to competitors or other ventures.
Musk’s Vision: From Cars to Robots
During the event, Musk appeared on stage to cheers and chants from investors. He called the moment a “new book” in Tesla’s story, declaring:
“What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.”
While many expected him to discuss Tesla’s electric vehicle roadmap, Musk instead emphasized the Optimus robot, the company’s humanoid AI project. The Tesla CEO described Optimus as central to the company’s long-term strategy, saying it could one day surpass the car business in value.
However, some analysts expressed concern that Musk’s growing focus on robotics and AI could distract Tesla from its core electric vehicle market. Gene Munster of Deepwater Asset Management noted:
“His vision of the ‘new book’ starts with Optimus. No mention of cars, FSD, or robotaxi yet.”
Tesla’s Financial Landscape and Stock Performance
Despite a challenging year marked by slowing EV sales and growing competition, Tesla stock has surged over 60% in the past six months, buoyed by optimism around its AI and robotics ambitions.
Still, Tesla’s sales have dipped in recent quarters, particularly since Musk’s alignment with former U.S. President Donald Trump earlier this year — a relationship that later collapsed. Investors remain divided over whether Musk’s focus on emerging technologies will stabilize Tesla’s business or heighten its volatility.
According to Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management:
“Elon Musk’s pay deal is another notch in the unbelievable things you see in business. But his polarizing persona has demolished the brand’s value in some markets.”
Opposition and Legal Challenges
Not all investors were pleased with the new pay deal. Major institutional shareholders such as Norway’s sovereign wealth fund and CalPERS (the largest U.S. public pension fund) voted against it, citing corporate governance concerns.
Earlier this year, a Delaware court struck down a similar pay plan, ruling that Tesla’s board was “too close” to Musk. In response, Tesla reincorporated in Texas, a move that many critics saw as a way to sidestep legal hurdles. The Delaware Supreme Court is still reviewing the case.
Optimus Robot: The Future of Tesla?
Musk remains convinced that the Optimus robot — a humanoid machine capable of performing physical labor — will become Tesla’s next major revenue driver. He even claimed that “everyone will want one,” positioning the robot as a potential replacement for human labor in certain industries.
Skeptics, however, question whether there is real demand for such technology or whether the project serves more as a publicity tool to sustain investor enthusiasm. Tesla also faces stiff competition in the robotaxi and AI sectors, particularly from Waymo, Cruise, and emerging Chinese tech firms.
Elon Musk’s Net Worth and Legacy
The approval of this pay package could push Elon Musk’s net worth beyond $400 billion, solidifying his position as the richest person in the world. His personal wealth remains tightly linked to Tesla’s stock performance, meaning that any surge in the Tesla share price could significantly expand his fortune.
Despite criticism, many analysts believe Tesla’s long-term valuation — driven by its AI, robotics, and energy divisions — could eventually justify Musk’s compensation if the company meets its bold growth targets.
Conclusion
The approval of Elon Musk’s $1 trillion pay deal underscores his unmatched influence over Tesla and the deep loyalty he commands among retail investors. Yet, it also highlights ongoing tensions between innovation, accountability, and governance in one of the world’s most valuable companies.
Whether Tesla’s future lies in electric vehicles, self-driving tech, or the Optimus robot, one thing remains certain — Elon Musk continues to reshape industries, inspire debate, and redefine the boundaries of corporate ambition.
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