Elon Musk Salary Update: From $0 Salary to a $1 Trillion Payday; How He Pulled It Off

Tesla shareholders have approved a record-breaking pay package for CEO Elon Musk, marking the largest corporate compensation deal in history. The decision, finalized on Thursday, gives Musk access to stock options potentially worth $1 trillion — if he meets ambitious growth targets for Tesla in the next decade.

More than 75% of shareholders voted in favor of the proposal, reaffirming confidence in Musk’s leadership despite recent controversies and governance concerns. This new package could make Musk the world’s first trillionaire, according to analysts cited by Reuters and the Associated Press.

Tesla’s Record-Breaking Pay Deal Explained

The new plan, proposed by Tesla’s board last year, grants Elon Musk over 423 million additional shares, increasing his stake from 15% to roughly 25%. Musk does not take a traditional salary or cash bonus; instead, his earnings depend entirely on Tesla’s performance milestones.

To unlock the full $1 trillion valuation potential, Musk must guide Tesla to reach a market capitalization of $8.5 trillion — up from its current $1.5 trillion — within ten years. Additional targets include launching one million robotaxis, achieving 12 million annual vehicle sales, deploying one million humanoid robots, and adding ten million Full Self-Driving subscriptions worldwide.

The board argued that the package aligns Musk’s incentives with shareholder interests, preventing him from diverting focus to other ventures like SpaceX, xAI, or Neuralink. In contrast, major institutional investors such as Norges Bank Investment Management and New York City pension funds voted against it, citing governance and fairness concerns.

Reactions and What Comes Next for Tesla

Despite the massive approval, the pay package sparked intense debate across corporate and political circles. Critics called it “excessive,” pointing to the previous $50 billion deal that was overturned by a Delaware court in 2024 for lack of board independence. Tesla has since moved its legal incorporation to Texas, where shareholders also approved its relocation during the same vote.

Musk celebrated the decision on social media and at a company event, saying, “I super appreciate it,” while thanking shareholders and employees. Supporters see the deal as essential to keeping Musk committed to Tesla’s long-term innovation goals, including its push into AI-driven robotics and autonomous vehicles.

However, Tesla faces headwinds. Sales have dipped amid political backlash over Musk’s open alignment with Donald Trump and his controversial role in the Department of Government Efficiency. Analysts warn that Tesla’s public image could affect demand, even as the company remains a global leader in electric vehicle production.

For now, Elon Musk’s official salary remains $0 — but if Tesla hits its targets, his reward could redefine the limits of executive compensation and make financial history.

FYI (keeping you in the loop)-

Q1: How much will Elon Musk make under Tesla’s new pay plan?

Elon Musk could earn stock options valued at up to $1 trillion if Tesla achieves all its growth milestones over the next decade.

Q2: Does Elon Musk receive a regular salary from Tesla?

No. Musk does not take a cash salary or annual bonus. His income is tied entirely to Tesla’s performance goals and share value.

Q3: Why did Tesla shareholders approve the $1 trillion package?

Shareholders voted to retain Musk’s focus and reward his leadership, believing his vision remains key to Tesla’s global expansion.

Q4: What challenges does Tesla face after the pay package approval?

Tesla faces brand backlash over Musk’s political ties, slower EV sales growth, and scrutiny from regulators and investors.

Q5: When will the SEC release the final shareholder vote count?

The full breakdown of Tesla’s shareholder vote will be detailed in an upcoming SEC filing expected later this month.