Daijiworld Media Network – Austin

Austin, Nov 7: Tesla shareholders on Thursday overwhelmingly approved a record-breaking pay package for CEO Elon Musk that could reach an estimated $1 trillion, ensuring his continued leadership as the company accelerates its efforts in artificial intelligence and robotics.

The massive compensation plan, which won more than 75 percent shareholder support at Tesla’s annual meeting held at its Austin factory, aims to retain Musk for at least the next seven-and-a-half years. The package could potentially increase Musk’s ownership in Tesla from around 12 percent to more than 25 percent.

“I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super-appreciate it,” a jubilant Musk told the cheering crowd as chants of “Elon” filled the auditorium.

Tesla Chair Robin Denholm said the deal was crucial for Tesla’s future growth, warning that the company’s stock could face a setback if Musk chose to step away. “Keeping Elon is vital to Tesla’s future,” she emphasized during the meeting.

Musk, already the world’s richest person with an estimated net worth exceeding $500 billion, has previously hinted that he could reduce his involvement with Tesla if his ownership stake wasn’t increased enough to maintain his influence over the company’s direction.

The newly approved package follows a series of legal hurdles, including a Delaware court’s repeated blocking of Musk’s 2018 $55.8 billion compensation deal. After the court’s decision, Tesla’s board crafted an interim $29 billion plan in August before finalizing the current trillion-dollar framework in September.

Under the new scheme, Musk must meet 12 performance milestones tied to Tesla’s market capitalization, operating profits, and production targets. The first tranche becomes available when Tesla’s market value hits $2 trillion — up from the current $1.5 trillion — alongside goals such as delivering 20 million vehicles.

While the vote marks another show of investor confidence in Musk, the move has drawn criticism from activist groups and proxy advisory firms. “Elon Musk just got one trillion dollars for failure,” claimed Tesla Takedown, a group that protested the proposal, citing falling sales and rising safety concerns.

Glass Lewis and Institutional Shareholder Services (ISS) also opposed the plan, calling it “unprecedented” and questioning whether it would keep Musk focused on Tesla given his commitments to other ventures.

However, market analysts viewed the result as a reaffirmation of investor faith in Musk’s vision. “This sweeping vote cements Elon’s role as the AI revolution takes hold,” said Wedbush analyst Dan Ives, adding that it reinforces confidence in Tesla’s long-term story.

With shareholder backing secured, Musk reiterated Tesla’s bold ambition to become “the most valuable company in the world by far” through breakthroughs in autonomous driving and artificial intelligence.