Massive Compensation Deal to Grant Musk Huge Stock Awards and Boost His Voting Power from 13% to 25%
Tesla has announced the results of its annual shareholder meeting held in Austin, Texas, where 75% of voting shares approved a nearly $1 trillion compensation package for CEO Elon Musk. The decision goes against recommendations from leading proxy advisory firms such as Glass Lewis and ISS.
The compensation package for the world’s richest man includes 12 tranches of stock awards, which will vest as Tesla meets key performance milestones over the next decade. The agreement will also increase Musk’s voting power from about 13% to 25%, adding more than 423 million shares to his holdings — fulfilling the demand Musk publicly made earlier in 2024.
Musk will receive the first tranche once Tesla reaches a market capitalization of $2 trillion, up from its current value of about $1.54 trillion. The next nine tranches will vest for every additional $500 billion increase in market cap, setting a target of $6.5 trillion. The final two tranches require a $1 trillion increase each, meaning Tesla must hit a market cap of $8.5 trillion for Musk to receive the full package.
In addition to market capitalization goals, Tesla has set a series of ambitious operational targets. The company aims to achieve annual adjusted profits between $50 billion and $400 billion, a staggering leap from the $4.2 billion in adjusted EBITDA reported for Q3 2025. In terms of production, Tesla plans to deliver 20 million vehicles, double the total of more than 8 million delivered so far. The roadmap also includes 10 million active FSD (Full Self-Driving) subscriptions, production and delivery of 1 million Optimus humanoid robots, and the deployment of 1 million robotaxis for commercial use — all of which remain in early stages of development.
However, as Reuters noted, Musk could still earn tens of billions of dollars without meeting most of the targets — collecting over $50 billion by hitting only a few easier milestones. Notably, the plan also lists several “included events” such as natural disasters, wars, pandemics, or legal changes, which would allow Musk to receive payouts even if Tesla fails to meet the operational thresholds.
During the meeting, Musk made highly optimistic claims about the Optimus robot, asserting that the technology would “end poverty,” “bring great healthcare to everyone,” and has potential “greater than the mobile phone, greater than anything.” The billionaire even suggested that the robot could help “prevent crime in the future” by monitoring and intervening during criminal activity. As of now, no Optimus robot model has been commercialized.
A notable point in the new compensation plan is the lack of any restrictions on Musk’s political activities — a source of ongoing controversy. The National Bureau of Economic Research (NBER) recently published a study estimating that Tesla’s U.S. sales from October 2022 to April 2025 could have been 67% to 83% higher if not for Musk’s divisive and partisan behavior. The plan also sets no minimum time requirement for how much attention Musk must dedicate to Tesla, even though he currently oversees several other companies.
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