Tesla Investors Back Elon Musk's Path To Becoming First Trillionaire
The compensation, which takes the form of stock options granted over the next decade, is fully performance-based, meaning Musk will receive nothing unless Tesla achieves a series of targets that financial experts consider improbable. To unlock the full potential, Musk must increase the company’s market capitalization nearly six-fold from its current valuation to $8.5 trillion.
Some of the financial targets and operational demands include delivering 20 million vehicles, deploying one million robotaxis in commercial operation, and selling one million Optimus humanoid robots. This extreme risk-reward structure was the board’s answer to the so-called “key man risk,” successfully convincing a majority of investors that only a package of this size could retain Musk and his singular drive, despite his recent political activities and focus on other ventures like xAI.
The vote came after weeks of heated public debate. Major institutional investors, including Norway's sovereign wealth fund and the largest U.S. public pension fund, CalPERS, along with influential proxy advisory firms like Glass Lewis, had urged a "no" vote, citing the package’s excessive size and the risk of significant dilution for current shareholders.
Critics also pointed to the volatility of Musk’s leadership and recent challenges within the core electric vehicle business, arguing the payout was unearned. However, the majority of retail and long-term investors saw the deal as an essential lifeline, believing that the chance to secure Musk's undivided attention and steer the company through its next phase of exponential growth is worth the extraordinary price.
When the preliminary results were announced the room erupted in cheers, with investors chanting "Elon!" as the CEO took the stage, accompanied by a couple of the company's dancing humanoid robots (important note: Elon can't dance to save a life). “What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” a triumphant Musk declared, reinforcing his commitment to the AI and robotics agenda. The approval not only reinstates an earlier, similar pay package that had been tied up in the Delaware courts, but it also signals shareholder support for a potential Tesla investment in Musk’s xAI startup.
Images Source: NORAD and USNORTHCOM Public Affairs, Public domain, via Wikimedia Commons
