Tesla CEO Elon Musk has achieved a major milestone as Tesla shareholders overwhelmingly approved a staggering pay package worth up to $878 billion over the next decade. The vote, held during Tesla’s annual shareholder meeting on Thursday, received more than 75% support, signaling strong confidence in Musk’s long-term vision to transform the company from an electric vehicle (EV) manufacturer into a global leader in artificial intelligence and robotics.

Following the approval, Tesla stock surged more than 3% in after-hours trading, reflecting investor optimism about the company’s ambitious growth plans and Musk’s strategic direction.

Elon Musk’s Vision: Beyond Electric Vehicles

During the shareholder meeting in Austin, Texas, Musk showcased his futuristic ambitions, accompanied by dancing robots, highlighting Tesla’s dual focus on autonomous vehicles and robotics technology. “What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” Musk said. “This really is going to be quite the story.”

Musk’s ambitious goals include:

• Delivering 20 million vehicles annually by the end of the decade.
• Operating one million robotaxis across the United States.
• Selling one million humanoid robots globally.
• Achieving $400 billion in core profits over 10 years.

The pay package is directly tied to Tesla achieving these milestones, meaning Musk will only earn the full amount if the company meets these rigorous performance targets. Additionally, Tesla’s market capitalization must rise substantially—from $1.5 trillion today to $8.5 trillion—before Musk can fully unlock the plan.

Board and Investor Support

Tesla’s board emphasized that the approval of this historic CEO pay package is designed to benefit long-term shareholders. The plan replaces a previous compensation proposal that faced legal challenges, ensuring Musk remains focused on Tesla’s core operations despite his involvement in other ventures such as SpaceX and his AI startup, xAI.

“Tesla’s shareholders are endorsing a strategy that could redefine not only the EV market but also the robotics and AI industries,” analysts noted. The vote also helped re-elect three directors to the Tesla board, solidifying leadership continuity.

While some major investors, including Norway’s sovereign wealth fund, initially opposed the package, the measure passed comfortably thanks to Musk’s ability to exercise full voting rights on his 15% stake in the company.

Implications for Tesla Stock and the EV Industry

The approval of Elon Musk’s pay package has been interpreted by many analysts as a positive signal for Tesla stock, which remains closely tied to investor confidence in Musk’s ambitious vision. Despite controversies over Musk’s political statements and media attention, the company’s valuation reflects its potential dominance in autonomous driving, robotaxis, and AI-powered robotics.

Investors are closely monitoring whether Tesla can meet its aggressive targets, as achieving them would not only justify the historic pay package but could also reshape the global EV market and cement Tesla’s position as a leader in innovation.

Conclusion

The $878 billion pay plan for Elon Musk represents more than just a compensation package—it reflects the high stakes of Tesla’s future. With milestones tied to vehicle production, robot deployment, and market growth, the plan incentivizes Musk to deliver transformative results over the next decade. As Tesla continues to push the boundaries of electric vehicles, AI, and robotics, both shareholders and industry watchers are eager to see whether Musk can turn his ambitious vision into reality.

Key Takeaways for Investors:

• Tesla shareholders approved a historic $878 billion pay plan for CEO Elon Musk.
• The plan is performance-based and linked to ambitious production and financial milestones.
• Tesla stock rose 3% after the vote, reflecting investor confidence.
• Musk’s vision extends beyond EVs to AI, robotics, and robotaxis, potentially reshaping the future of transportation.