Tesla shareholders approve Elon Musk’s $1 trillion pay package
The voting results were announced at Tesla’s 2025 annual shareholders meeting Thursday.
At its annual shareholder meeting Thursday, Tesla announced that shareholders voted for CEO Elon Musk’s much-watched $1 trillion pay package, with 75% voting in favor.
Tesla’s board argued that Proposal 4 — a performance-based compensation package granting Musk greater control over the company — was essential to retaining him and, by extension, ensuring Tesla’s continued success.
For Musk to receive the full payout, he and Tesla must hit a number of milestones over the next decade. That includes raising Tesla’s market cap to $8.5 trillion from its present $1.4 trillion, delivering a million AI robots, and deploying a million robotaxis into commercial operation.
The board didn’t announce shareholders’ decision on investing in xAI, even though it had more yes than no votes, thanks to member abstentions.
Proposal 7 argued that xAI’s AI expertise would complement Tesla’s autonomous driving and robotics endeavors, and would give Tesla investors a stake “in a major AI player, potentially yielding significant financial returns while fostering technological advancements that benefit Tesla’s customers and shareholders.”
Musk himself has said investment in xAI is something Tesla should have done “long ago.”
Ahead of the annual meeting, shareholders voted on 14 separate shareholder and company proposals, on topics that also included refilling Tesla’s employee stock option pool, ratifying an auditing firm, and performing a child labor audit.
Shareholders followed the board’s recommendations in all but one, voting for Proposal 12 to reelect each director annually.
