Tesla shareholders have approved a landmark compensation package for CEO Elon Musk, agreeing to a record US$1 trillion payout if he meets strict performance benchmarks. The decision, made during the company’s annual general meeting on June 13, 2024, saw 75 percent of investors backing the proposal, which immediately energized both markets and Musk’s supporters. The package will only be awarded if Tesla’s market value soars from US$1.4 trillion to US$8.5 trillion, and if Musk successfully deploys one million fully autonomous Robotaxi vehicles into commercial use.
The meeting in Austin, Texas, featured Musk celebrating on stage amid loud cheers. He opened his remarks by spotlighting the Optimus humanoid robot and highlighting ambitious advances in Tesla’s full self-driving technology. Some major institutional investors opposed the plan, but a large number of retail shareholders ensured its passage. The move has sparked debate about the feasibility of the targets and the scale of the payout, especially as legal challenges continue after a Delaware court previously rejected an earlier version of the plan. Tesla has since moved its incorporation to Texas, and the package’s future remains under legal review.
The meeting in Austin, Texas, featured Musk celebrating on stage amid loud cheers. He opened his remarks by spotlighting the Optimus humanoid robot and highlighting ambitious advances in Tesla’s full self-driving technology. Some major institutional investors opposed the plan, but a large number of retail shareholders ensured its passage. The move has sparked debate about the feasibility of the targets and the scale of the payout, especially as legal challenges continue after a Delaware court previously rejected an earlier version of the plan. Tesla has since moved its incorporation to Texas, and the package’s future remains under legal review.
