If he achieves ambitious goals, he earns 424 million shares and could become the owner of more than 25% of the company — with the biggest payout in corporate history!
- Over 75% of shareholders voted in favor of the plan.
Despite strong opposition from funds such as CalPERS, Norges, and the New York fund, an absolute majority approved.
The new package replaces the 2018 plan—which was overturned by a Delaware judge in January of this year.
- Musk only receives the bonus if he meets all the goals by 2035.
The $1 trillion package is 100% contingent on future performance. He doesn't receive anything automatically.
The figure comes from the estimated total stock appreciation he can unlock if he delivers everything.
- The required goals are aggressive — and public
To receive the 424 million shares, Musk needs to take Tesla to a new level on a global scale:
• 20 million cars delivered per year
• 1 million operational humanoid robots
• 10 million paid FSD subscriptions
• Adjusted EBITDA of US$400 billion
• Tesla valued at US$8.5 trillion on the stock market
Today the company is worth approximately US$1.5 trillion and delivers approximately 2 million vehicles per year.
- The first tranche only comes with a market value of US$2 trillion.
Each block of shares is only released if two conditions are met simultaneously:
→ market valuation target
→ operational or financial target
Even the first requires Tesla to grow by 33% and deliver 11.5 million cars.
- The shares given in the package cannot be sold for up to 10 years.
Musk will be able to vote with the shares, but will not be able to liquidate the gains for a long time.
If everything is unlocked, he will hold more than 1 billion Tesla shares, consolidating voting power.
- The shares given in the package cannot be sold for up to 10 years.
Musk will be able to vote with the shares, but will not be able to liquidate the gains for a long time.
If everything is unlocked, he will hold more than 1 billion Tesla shares, consolidating voting power.
The plan is necessary to maintain his full dedication to Tesla.
Since founding xAI and expanding his focus to other areas (such as SpaceX, Twitter/X, and politics), investors have questioned whether he would remain at Tesla.
The plan attempts to ensure the opposite.
- Musk says he needs control to protect Tesla
He claims he doesn't want the risk of "Tesla's army of robots falling into the wrong hands."
But he also stated that he doesn't want absolute power: "If I go crazy, I need to be able to be fired."
- The vote was treated as a referendum on Musk.
He even publicly stated that he might leave Tesla if the plan was rejected.
In practice, the shareholders gave their approval for him to lead the company's new phase: a transition from car manufacturer to artificial intelligence platform.
- Opposition from large funds wasn't enough to block it.
The consulting firm ISS recommended voting against, calling the package "astronomical" and lacking clear safeguards.
But the support of individual investors—who are now the majority—secured Musk's victory.
- With the approval, Musk regains control of the narrative
Even though the 2018 package remains stalled in court, the approval of the new plan reinforces the perception that Tesla is tied to its fate.
It's a clear signal to the market: the Musk risk remains valid—for success or for chaos.