Tesla shareholders have overwhelmingly approved Elon Musk’s 2025 CEO compensation package, giving the green light to one of the most closely watched executive pay proposals of the year.
At the company’s annual shareholder meeting on Thursday, it was revealed that 75% of shareholders voted in favour of the new plan, reaffirming support for Musk’s leadership, and a compensation plan that could be worth up to $1 trillion.
The approval marks a significant moment for Tesla, coming after months of debate about the structure, scale, and purpose of Musk’s compensation. While details of the package were outlined ahead of the meeting, the vote itself reflects broad confidence among investors that Musk’s aggressive targets and unconventional approach continue to drive Tesla’s long-term value.
Supporters contend that tying Musk’s pay to the plan’s ambitious performance milestones is crucial to keeping him deeply committed to Tesla — and helps ensure he doesn’t walk away from the company.
This year’s compensation plan echoes elements of Musk’s landmark 2018 package, which was entirely tied to market capitalization and operational milestones—targets that many analysts initially viewed as unrealistic. Tesla ultimately achieved nearly all of those goals years ahead of schedule, helping cement the company’s position as the world’s most valuable automaker and the driving force behind the transition to electric mobility.
Investors hope the same happens with the 2025 package, which follows a similar structure, tying Musk’s earnings to forward-looking achievements in areas including vehicle production, autonomy, energy storage deployments, and profitability.
