ELON Musk has won a decisive victory in a shareholder vote that could make him the world’s first trillionaire, after more than 75 per cent of Tesla investors approved a record-breaking pay package tied to long-term performance goals.
“Fantastic group of shareholders,” AP reported Musk saying following the vote, before adding, “Hang on to your Tesla stock.”
The result marks a show of faith in Musk’s leadership at a time when Tesla is grappling with declining sales, eroding market share and weakening profits — challenges that critics say are partly of Musk’s own making. Car buyers in Europe and the United States have increasingly turned away from the brand as Musk wades into politics and spreads conspiracy theories.
The vote came just days after figures showed Tesla’s car sales had plunged again across Europe, including a 50 per cent fall in Germany last month.
Even so, many investors continue to see Musk as a visionary capable of extraordinary business turnarounds, recalling how he transformed Tesla from near-bankruptcy into one of the world’s most valuable companies.
The pay deal, designed by Tesla’s board, would grant Musk stock options worth up to $1 trillion if he meets a series of ambitious milestones over the next decade — including increasing Tesla’s market capitalisation nearly sixfold and delivering 20 million electric vehicles, more than double the company’s lifetime output.
He must also deploy one million humanoid robots, part of a so-called “robot army” that Musk claims will revolutionise home and workplace automation. Partial progress toward these goals would release shares in stages, potentially adding billions to his fortune even before the full targets are met.
Musk’s current estimated net worth stands at around $493 billion, according to Forbes — still short of John D. Rockefeller’s inflation-adjusted record of $630 billion, set more than a century ago.
The vote passed despite resistance from powerful institutional investors including CalPERS, the largest US public pension fund, and Norway’s sovereign wealth fund. Corporate governance watchdogs Institutional Shareholder Services and Glass Lewis also condemned the package, prompting Musk to label them “corporate terrorists” during a recent investor meeting.
Critics accused Tesla’s board of being overly loyal to Musk and questioned whether such immense rewards were justified.
“He has hundreds of billions of dollars already in the company and to say that he won’t stay without a trillion is ridiculous,” said Sam Abuelsamid, an analyst at research firm Telemetry who has tracked Tesla for nearly two decades. “It’s absurd that shareholders think he is worth this much.”
Supporters countered that the deal ensures Musk remains focused on Tesla as he pushes to transform it into a global artificial intelligence leader.
“This AI chapter needs one person to lead it and that’s Musk,” said Dan Ives, an analyst at Wedbush Securities. “It’s a huge win for shareholders.”
Investors were also aware that Musk had threatened to leave Tesla if the package was rejected, a move many feared could send the company’s stock tumbling.
Tesla shares, which have risen 80 per cent over the past year, initially climbed after the vote but later closed little changed at $445.44 in after-hours trading.
Musk insisted the vote was less about personal wealth than about consolidating control over Tesla — his stake will nearly double to 30 per cent — arguing that his influence was essential to manage the company’s emerging “robot army”, which he claimed could pose risks to humanity if misused.
Shareholders also backed allowing Tesla to invest in Musk’s artificial intelligence venture, xAI, while rejecting a proposal to make it easier for investors to sue the company by lowering the ownership threshold required to file such cases. - November 7, 2025
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