Elon Musk to Become World's First Trillionaire After Tesla Shareholders Approve $1 Trillion Pay Package

At the annual meeting of Tesla, Inc. in Austin, Texas, shareholders voted to approve a performance-based compensation plan for Elon Musk that could deliver up to $1 trillion in company stock over the next decade.

The proposal received support from more than 75% of voting shareholders, paving the way for Elon Musk to become the world's first trillionaire.

In other words, he is going to become the first person with a trillion in his net worth.

Under the plan, Musk must achieve a set of ambitious milestones for Tesla’s market capitalisation, vehicle production, and robotics business. The target market cap is set at $8.5 trillion by 2035.

Elon Musk talked about the future and praised shareholders, saying:

“Fantastic group of shareholders,” and added, “Hang on to your Tesla stock.”

The plan is split into 12 tranches, each tied to specific operational and financial benchmarks.

Investors had raised concerns about the scale and structure of the package.

For example, according to Reuters, Norges Bank Investment Management, the manager of Norway’s sovereign wealth fund, publicly opposed the plan, citing concerns over dilution and “key-person risk”.

Tesla’s board pushed the approval campaign vigorously.

In a letter to shareholders, board chair Robyn Denholm warned that Musk’s departure could put “significant value” at risk.

Historically, Musk’s prior compensation plan, approved in 2018 and valued at roughly $56 billion, was struck down by a Delaware court in 2024 for failing proper procedural approval.

With Tesla’s incorporation moving to Texas and the new package entering shareholder votes this year, the company faced pressure to design a plan that could withstand further legal scrutiny.

If all conditions are met, Musk’s Tesla ownership could increase from around 15% to approximately 25%.