Shareholders of Tesla have given their approval for a potential bonus of $1 trillion (around €860 billion) for CEO Elon Musk. As the meeting approached, there was growing criticism regarding the substantial payout; however, more than 75 percent of the shareholders backed the decision in the end.
This compensation will be disbursed over a decade, but it comes with specific conditions. Tesla’s market value needs to reach $8.5 trillion, increasing from the current $1.5 trillion.
Additionally, the company has set ambitious targets for its planned robotaxis and AI robots. Tesla is also aiming to achieve sales of twenty million vehicles within the next ten years, having sold two million cars by 2024.
The size of this compensation has sparked debate, as it is unprecedented for a CEO. Some shareholders expressed unease after investment advisors recommended against such an increase. Notably, the Norwegian sovereign wealth fund voiced objections, not only due to the high figure but also because it believes Tesla is not doing enough to address the risks stemming from its strong dependence on Musk.
Musk Fuels Increased Share Values Supporters argue that it is essential for Musk to remain an influential figure. They observed a drop in market value when he reduced his involvement in early 2025.
This was when Musk was acting as an advisor to then President Donald Trump, mainly focusing on finding areas for government budget cuts. After Musk concluded that role and returned fulltime to Tesla, the share prices experienced an upturn. Robyn Denholm, the chairman of Tesla, cautioned that Musk might depart from the company if shareholders rejected the bonus proposal. Ultimately, 75 percent of the shareholders regarded the bonus as a positive decision.