On November 6, 2025, Tesla shareholders delivered a decisive victory for CEO Elon Musk, approving a historic compensation package worth up to $1 trillion with over 75% shareholder approval. This landmark decision represents the largest executive pay package in corporate history and reflects investor confidence in Musk’s ability to drive unprecedented growth across electric vehicles, autonomous robotaxi technology, artificial intelligence, and humanoid robotics. The approval comes amid broader debates about wealth concentration in America. For detailed information on the shareholder vote, investors can review Tesla’s investor relations materials.
Tesla Shareholders Approve $1 Trillion Compensation Package for CEO Elon Musk
Performance Milestones Required to Unlock Full Package
Stakeholder Perspectives: Support and Opposition
Cathie Wood, CEO of Ark Invest: Publicly urged investors to support the package. The plan directly aligns CEO compensation with shareholder value creation. Learn more about Musk’s previous stock activities and investor confidence.
Norges Bank Investment Management (Norway’s sovereign wealth fund): Voted against the plan, expressing concern about “the total size of the award, dilution and lack of mitigation of key person risk.” Opposition focused on regulatory challenges Tesla faces globally, which could impact execution of milestones.
Major Investors’ Voting Positions
Historical Context: The 2018 Package and Legal Challenges
- Voting Rights Expansion: If Musk fulfills all performance targets, his Tesla voting control could increase from 15% to approximately 25%, adding over 423 million shares to his holdings (though some may be sold to cover taxes).
- Texas Incorporation Advantage: Tesla’s incorporation in Texas (rather than Delaware) permitted Musk to vote his own shares in this shareholder meeting. Delaware law historically restricted such self-interested voting.
- Retail Investor Support: The substantial approval likely came from smaller shareholders who remained invested despite Tesla’s recent market volatility and Musk’s political activities, particularly his 2024 involvement in U.S. elections.
- Stock Performance on Vote Day: Shares closed down approximately 3.5% on November 6; after-hours trading was mixed, reflecting market uncertainty about the long-term implications.
- xAI Investment Proposal: Shareholders also voted on a nonbinding proposal to authorize Tesla investment in xAI, Musk’s artificial intelligence venture. See related developments in Tesla’s strategic expansion initiatives.
Tesla shareholders formally approved Elon Musk’s $1 trillion compensation package on November 6, 2025, with over 75% of votes cast in favor. The decision reinforces investor belief that Musk is essential to Tesla’s next phase of growth across electric vehicles, autonomous driving technology, artificial intelligence, and robotics technology. The package requires Musk to meet twelve performance milestones, including expanding Tesla’s market value from $1.5 trillion to $8.5 trillion, delivering 20 million cumulative vehicles, deploying 1 million robotaxis in commercial operation, achieving 10 million active Full Self-Driving subscriptions, and reaching $400 billion in adjusted EBITDA across multiple measurement periods. For additional information on Tesla’s corporate governance and compensation structure, investors may review Tesla’s SEC filings. For context on Tesla’s strategic direction, see Tesla’s 2025 shareholder meeting materials.
This historic compensation decision continues to shape discussions about executive compensation and wealth concentration in America. For investors seeking deeper understanding of Tesla’s business strategy, the company’s official channels provide comprehensive documentation. Stay informed about Tesla’s latest product developments and market strategies as the company moves forward in executing these ambitious performance targets.
