Synopsis: Tesla shareholders have approved a record-breaking $1 trillion stock-based pay package for CEO Elon Musk, potentially making him the world’s first trillionaire. The deal ties Musk’s fortune to Tesla’s massive $8.5 trillion market cap target—nearly five times its current value.
In a landmark decision, Tesla shareholders have approved CEO Elon Musk’s unprecedented $1 trillion compensation plan, a move that could cement his status as the world’s first trillionaire if the company achieves its ambitious growth goals.
The decision came during Tesla’s annual shareholder meeting on Thursday, where over 75% of shareholders voted in favor of the stock-based pay plan, according to a report by CNN. The approval sparked cheers and chants as the results were announced, reflecting strong investor support despite concerns over Tesla’s recent performance.
“I super appreciate it,” Musk said, addressing the crowd after the vote and thanking both shareholders and Tesla’s board for their backing.
A Historic Pay Package
Unlike most corporate leaders, Elon Musk does not receive a salary. His compensation is entirely tied to stock options linked to Tesla’s market value and performance milestones.
Under the new agreement, Musk could earn up to 423.7 million Tesla shares over the next decade if Tesla’s market capitalization reaches $8.5 trillion—a monumental increase of 466% from its current valuation.
If achieved, the payout would be worth around $1 trillion, making it the largest executive pay deal in history. This would potentially elevate Musk’s net worth beyond $1.2 trillion, surpassing all current billionaires, including Amazon’s Jeff Bezos and LVMH’s Bernard Arnault.
To put the scale into perspective, if Musk were to secure all 12 tranches of the award, his daily earnings could average around $275 million, an unprecedented figure in the corporate world.
What It Means for Tesla
Tesla’s board had previously cautioned that rejecting the pay package could lead Musk to step away from the company. In a recent filing, the board noted that Musk had expressed concerns about remaining CEO without “greater assurances of control” that the plan would provide.
The approval ensures Musk’s continued leadership during a challenging period for Tesla. The company has faced declining sales and profits in 2025, driven by slowing electric vehicle demand and reduced government incentives in the U.S.
Despite these hurdles, shareholders appear confident that Musk’s long-term vision—focused on AI, robotics, and autonomous transportation—will drive Tesla’s next phase of explosive growth.
What’s Next for Musk’s Net Worth
Currently, Elon Musk’s net worth hovers around $230 billion, according to Bloomberg’s Billionaires Index. If Tesla achieves its projected valuation and Musk exercises all stock options under this plan, his wealth could soar past $1 trillion, marking a new milestone in global financial history.
While analysts remain divided on whether Tesla can realistically hit the $8.5 trillion mark, the vote underscores investors’ belief in Musk’s ability to deliver exponential growth—just as he did in the past decade.
Disclaimer: This article is based on publicly available information and reports from reputable sources. Actual financial outcomes depend on market performance and regulatory conditions that may impact Tesla’s valuation and Musk’s compensation plan.
