On Thursday, Tesla shareholders approved a historic and unprecedented $1 trillion compensation package for CEO Elon Musk, signaling strong confidence in his leadership and the company’s ambitious future plans. This full pay plan is set to take effect by 2035, contingent on both Musk and Tesla meeting a series of challenging financial and production milestones over the next decade and beyond. If these targets are successfully achieved, Musk’s ownership stake in Tesla is expected to increase dramatically from the current 12 percent to about 25 percent. The move received overwhelming support from shareholders, with more than 75 percent backing the proposal in a preliminary vote.
Elon Musk marked the occasion with enthusiasm during an event at Tesla’s Gigafactory in Austin, Texas. Onstage with him were two dancing humanoid robots—known as Tesla’s Optimus models—showcasing the company’s foray into robotics. “Look at us, this is sick,” Musk remarked, highlighting the futuristic vision that underpins Tesla’s evolving business strategy. However, to fulfill the lofty goals tied to this compensation plan, Tesla will need to expand well beyond its current dominance in electric vehicles (EVs), pushing into new territories such as robotics, autonomous driving, and subscription-based software services.
Industry experts emphasize that Tesla’s next frontier involves becoming a leader not only in the United States but also across Europe and other global markets. Seth Goldstein, a senior equity analyst at financial services firm Morningstar, notes that Tesla will have to outpace competitors in multiple sectors, including the highly competitive fields of autonomous driving technology and robotics. The targets set forth in the compensation package underline this broad ambition: Tesla must reach an $8.5 trillion market valuation within ten years, deliver 20 million vehicles annually, manufacture and deploy 1 million Optimus robots, operate 1 million robotaxis, and sell 10 million subscriptions to its “Full Self-Driving” (FSD) software within a three-month window, among other financial objectives.
While this approval represents a major win for Musk, it comes amid ongoing legal battles related to his previous compensation package. The 2018 plan, which valued Musk’s potential earnings at $50 billion, has been mired in litigation after a shareholder alleged that Musk wielded excessive influence over Tesla’s board. The lawsuit contended that such influence compromised the board’s ability to fulfill its fiduciary duties to shareholders. This legal dispute prompted significant corporate changes, including Tesla’s reincorporation in Texas. The case was recently heard by a panel of judges in Delaware’s Chancery Court on appeal, with a final decision expected in the coming months.
In the lead-up to the vote, Tesla’s board made a strong case that the extraordinary pay package was essential to retain Musk’s leadership and ensure his continued focus on driving the company’s innovation. During an investor call last month, Musk himself articulated why maintaining substantial control over Tesla was crucial, particularly as the company seeks to advance in robotics and autonomous systems. “If we build this robot army, do I have at least a strong influence over this robot army?” Musk asked rhetorically, expressing discomfort with the idea of developing such advanced technology without a corresponding degree of control.
Following the approval of the compensation plan, Musk addressed investors in Texas with updates on several key projects. One highlight was the announcement that production of the Cybercab—a fully self-driving vehicle notable for its absence of a steering wheel or side mirrors—would begin in April. This vehicle represents a bold step forward in Tesla’s autonomous vehicle ambitions, though it requires federal regulatory approval before it can be legally operated on public roads.
Musk also revealed plans for rapid expansion of Tesla’s robotaxi service into new cities, including Dallas, Las Vegas, Miami, and Phoenix. Since late June, Tesla has been running a small, invite-only autonomous taxi service in Austin, Texas, but each vehicle currently includes a “safety rider” in the front passenger seat to intervene if the system encounters problems. Musk pledged that these safety riders would be removed in Austin by the end of the year, moving closer to fully driverless operation. Tesla also operates a limited ride-hailing service in the San Francisco Bay Area, but these vehicles still require human drivers using Tesla’s Full Self-Driving (Supervised) technology due to legal restrictions on autonomous vehicle use for passenger transport in California.
In addition to these developments, Musk announced that Tesla would unveil the next-generation Roadster on April 1. This vehicle has been highly anticipated since