AUSTIN, Texas — Tesla shareholders approved CEO Elon Musk’s newest, highly controversial compensation plan that could be worth as much as $1 trillion, cementing investor support as the company pushes deeper into AI, robotics and autonomy, Nov. 6, 2025.
The vote — announced at Tesla’s annual meeting — gives Musk a massive, performance-based equity award and signals that a decisive majority of owners want him to stay in charge, even as critics warn the package is outsized and further concentrates power.
Tesla Musk pay package: what shareholders just endorsed
According to Reuters, more than 75% of votes backed the Tesla Musk pay package, which is structured as stock tied to a long list of milestones over the next decade. The plan’s estimated net value was pegged at about $878 billion after cost adjustments, though the ultimate value will swing with Tesla’s share price.
Supporters say the Tesla Musk pay package is designed to keep Musk focused and aligned with shareholders by paying out only if the company hits ambitious goals — including major progress in robotaxis and humanoid robots — and if Tesla’s valuation climbs dramatically from current levels.
Why the vote matters for Tesla’s strategy
In the company’s telling, the Tesla Musk pay package isn’t just about pay — it is a bet on Musk’s ability to turn Tesla from an automaker into a dominant AI-and-robotics platform. Axios reported the board framed the vote as pivotal to retaining Musk, while opponents argued Tesla should not have to “pay again” to keep an already-wealthy CEO engaged.
Market reaction around the meeting was also shaped by expectations the vote would pass. Investopedia noted prediction markets had priced in a near-certain approval heading into the meeting — underscoring how strongly the outcome had been anticipated.
Tesla Musk pay package faces familiar criticism
Even with the win, the Tesla Musk pay package is likely to remain a lightning rod. Critics say the scale is hard to justify, and they point to governance concerns that have followed Tesla for years — including board independence questions and the practical impact of dilution if Musk ultimately earns the full award. The Guardian described the plan as potentially the largest corporate payout ever if milestones are met, and reported continued pushback from some investors over the concentration of influence.
Yahoo Finance also highlighted the tension behind the vote: Tesla is asking shareholders to back a giant incentive plan while the company navigates competitive pressure, scrutiny of its autonomy ambitions, and questions about Musk’s bandwidth across multiple ventures.
How this fits into a long-running pay saga
The Tesla Musk pay package approved Thursday builds on a compensation fight that has been running for most of the past decade. Tesla shareholders first approved a major, milestone-based Musk plan in 2018; Reuters reported in March 2018 the vote passed with roughly 73% support excluding Musk and his brother.
That earlier deal later became the subject of intense litigation. A Delaware judge struck down the 2018 award in early 2024, calling it an “unfathomable sum,” Reuters reported in January 2024. Tesla shareholders then voted in June 2024 to reapprove the 2018 package, Reuters reported, setting the stage for Tesla’s broader effort to secure Musk’s long-term commitment.
Now, with the latest Tesla Musk pay package approved, the next chapter shifts from the ballot box to execution: whether Tesla can hit its towering performance targets — and whether the company can reassure skeptics that its governance can keep pace with its ambitions.
