In a groundbreaking decision that captivated the global financial world, Tesla shareholders have resoundingly approved a colossal pay package for CEO Elon Musk, valued at nearly $1 trillion (equivalent to IDR 16,710 trillion). The approval, secured with an overwhelming 75 percent of votes on Thursday, November 6, 2025, was met with enthusiastic applause at the company’s annual general meeting in Austin, Texas, signaling strong confidence in Musk’s leadership and ambitious vision for the electric vehicle giant.
This unprecedented compensation plan hinges on Musk, currently the world’s wealthiest individual, significantly boosting Tesla’s market capitalization over the next decade. Should he achieve all predetermined milestones, he stands to receive hundreds of millions of new shares, distributed in 12 tranches. This could potentially elevate his ownership stake from 13 percent to 25 percent, adding over 423 million shares and substantially reinforcing his voting influence within the company.
At its core, this substantial remuneration package directly intertwines Tesla’s market capitalization growth with the achievement of rigorous operational performance benchmarks. Each phase of the incentive award is meticulously tied to specific financial and production targets, ensuring that Musk’s personal gains are inextricably linked to the company’s overall success and expansion.
The roadmap to this colossal valuation includes a series of ambitious market capitalization targets. According to CNBC, the initial phase of the package commences once Tesla’s market value surpasses $2 trillion (equivalent to IDR 33,414 trillion), a significant leap from its current valuation of approximately $1.54 trillion (equivalent to IDR 25,728 trillion). The subsequent nine stages demand incremental increases of $500 billion (equivalent to IDR 8,353 trillion) each, culminating in a market cap of $6.5 trillion (equivalent to IDR 108,595 trillion). The final two stages are even more demanding, requiring jumps of $1 trillion apiece, pushing the total market valuation to an astounding $8.5 trillion (equivalent to IDR 142,009 trillion) for the full payout.
Beyond market value, the plan outlines aggressive operational and financial objectives. Tesla’s profit targets range from an annual $50 billion (equivalent to IDR 835.3 trillion), escalating to a peak of $400 billion (equivalent to IDR 6,682 trillion). Production and delivery goals are equally bold: 20 million vehicle deliveries, 10 million active customers for its Full Self-Driving (FSD) service, the production of 1 million Optimus humanoid robots, and the deployment of 1 million commercially operational driverless taxis. However, the details regarding FSD subscriptions – specifically whether customers must purchase a subscription or can access it via a free trial – remain unclarified, with the company yet to publicly elaborate on its subscription model.
Following the announcement of the vote results, Musk, in characteristic flamboyant style, ascended the stage to enthusiastic cheers and applause, even breaking into a celebratory dance. Addressing thousands of attendees, he declared, as quoted by BBC, “What we’re about to embark on is not just a new chapter of Tesla’s future, but a whole new book.” Musk further emphasized that Tesla’s shareholder meetings were considerably more engaging than those of other corporations, showcasing his unique approach to corporate communication.
Musk then shifted his focus to the ambitious Optimus robot project, painting a grand vision where these humanoid robots could eradicate poverty and deliver unparalleled medical services globally. He even suggested their potential role in crime prevention by tracking and apprehending perpetrators. Despite these expansive claims, a commercial version of Optimus has yet to be released, and Tesla has not announced an official production timeline for the robots.
Naturally, the colossal size of this compensation package has drawn extensive scrutiny and criticism from various quarters. Despite the outcry, Tesla’s board of directors staunchly defended the package, arguing that Musk might depart if it were rejected. The board asserted that the company simply could not afford to lose a figure deemed instrumental to Tesla’s extraordinary success and continued innovation.
However, several prominent investors voiced strong opposition. These included the Norwegian sovereign wealth fund, recognized as the world’s largest, alongside CalPERS, the largest public pension fund in the United States. Key proxy advisory firms, Glass Lewis and ISS, also recommended against the package, reflecting significant concerns about corporate governance and executive compensation.
It’s worth noting that Tesla shareholders had previously twice approved an earlier multi-billion dollar pay package for Musk, which was contingent on a tenfold increase in market value – a target he successfully achieved. However, that agreement was later invalidated by a Delaware judge, who cited the board’s overly close relationship with Musk as a conflict of interest. In response, Tesla relocated its legal domicile to Texas. The Delaware Supreme Court is currently reviewing the appeal of that prior ruling, adding another layer of complexity to the ongoing saga of Musk’s compensation.
Summary
Tesla shareholders have overwhelmingly approved a colossal pay package for CEO Elon Musk, valued at nearly $1 trillion, on November 6, 2025. This unprecedented compensation plan is contingent on Musk significantly boosting Tesla’s market capitalization and achieving rigorous operational performance benchmarks over the next decade. If all milestones are met, he could receive hundreds of millions of new shares, potentially increasing his ownership stake from 13 percent to 25 percent. The plan outlines ambitious market capitalization targets, culminating in an $8.5 trillion valuation for the full payout, alongside aggressive goals for vehicle deliveries, FSD customers, and Optimus robot production.
Despite the board’s defense of the package as essential to retain Musk, its massive size has drawn significant scrutiny and opposition. Prominent investors like the Norwegian sovereign wealth fund and CalPERS, along with key proxy advisory firms, recommended against the approval. This recent approval follows a previous multi-billion dollar package that was invalidated by a Delaware judge due to a conflict of interest, prompting Tesla to relocate its legal domicile to Texas with an appeal of that prior ruling currently underway.
