In a historic move, Tesla shareholders have officially approved a record-breaking compensation package for CEO Elon Musk, valued at nearly $1 trillion (approximately £760 billion), during the company’s annual general meeting in Austin, Texas on Thursday.
The approval marks one of the largest executive pay packages in corporate history, reaffirming shareholder confidence in Musk’s leadership despite recent controversies surrounding the company’s performance and governance. The package, which is heavily tied to Tesla’s stock performance, is designed to reward Musk only if the company achieves ambitious market capitalization and operational milestones.
According to sources close to the matter, the compensation plan mirrors the original 2018 deal that was previously struck down by a Delaware court earlier this year over concerns about corporate oversight. Shareholders have now reinstated the plan following Tesla’s appeal, signaling their continued trust in Musk’s vision for innovation and growth.
Elon Musk thanked investors for their overwhelming support, describing the decision as a “massive vote of confidence” in Tesla’s mission to accelerate the world’s transition to sustainable energy. He also reaffirmed his commitment to staying with the company long-term, stating, “Tesla’s best days are still ahead.”
The record package comes at a time when Tesla faces mounting competition in the electric vehicle sector and scrutiny over slowing sales growth. Nonetheless, investors see Musk as a driving force behind the company’s dominance in the EV market, space technology, and artificial intelligence integration.
Analysts say the approval could boost investor sentiment and stabilize Tesla’s share price, which has fluctuated in recent months amid global market uncertainty.
