News
Elon Musk took to the stage on Thursday at Tesla’s annual meeting to raucous applause and chants of “Elon!” from shareholders gathered at the company’s Texas gigafactory. Behind him, lit in neon-purple lights, the words “Sustainable Abundance” glowed in a graffiti scrawl. Taking to the stage, Musk danced alongside the humanoid robots- named Optimus- that he is betting on in Tesla’s next phase of expansion.
What could have been mistaken for a rock concert or a scene from a dystopian film was, in fact, Tesla’s annual meeting, where shareholders voted to award Musk a $1 trillion pay package -a deal that could make the world’s already richest man, a trillionaire.
The pay deal, approved by 75% of shareholders, is the largest payout in history. Despite Musk’s fist-pumping jubilation at Thursday’s meeting, the award is far from a cash-in-hand deal. To receive the full amount, Musk must meet a series of ambitious developmental milestones, including sextupling Tesla’s valuation to $8.5 trillion, increasing earnings 24-fold to $400 billion, and selling millions of robots and autonomous-driving subscriptions. Until these goals are achieved, Musk will receive no salary or bonus.
The motion passed despite opposition from governance advisers: both Institutional Shareholder Services and Glass Lewis urged investors to vote against the proposal.
During his acceptance speech, Musk outlined his bold vision for Tesla’s next chapter, describing a world governed by AI and populated by humanoid robots. Speaking to the crowd of selected shareholders, he said:
“It’s going to be the biggest product of all time by far. Optimus is kind of like an infinite money glitch,” he added. “I guess what I’m saying is, hang on to your Tesla stock.”
The historic pay package is not without its opponents. New York State Comptroller Thomas DiNapoli, who led a campaign against the proposal, urged voters to consider the risks of granting a single individual such unprecedented financial power.
“This is pay for unchecked power, not pay for performance,” DiNapoli said. “The board has rewarded distraction and entrenched a CEO who answers to no one.”
Among other opponents was Norway’s oil fund- a top-10 investor with a 1.1% stake- who drew attention to the “key person risk” associated with such a massive payout.
Tesla’s annual meeting concluded a rocky year for the company, marked by a 37% fall in third-quarter profits, billions in potential lost revenue following the end of government EV incentives, and a host of political controversies stemming largely from Musk’s involvement with the Trump administration.
Musk countered the skepticism with grandiose promises about the future of humanoid robots, telling the enraptured audience that this ‘second workforce’ could advance human progress and “eliminate poverty.”
It remains to be seen whether Musk can deliver on the ambitious growth targets tied to his pay package. However, if one thing is clear from his landslide victory, it’s that when it comes to Tesla, Elon Musk is still very much in the driver’s seat.
Keep up-to-date with the latest mobility news by subscribing to MOVEMNT’s free newsletter
