On November 6, 2025, Tesla shareholders greenlit a $1 trillion pay package for CEO Elon Musk, potentially paving the way for him to become the world’s first trillionaire. This decision comes despite ongoing criticism of Musk’s divided attention across multiple ventures, leading some to label him a “part-time CEO.”
Background on the Pay Plan
The pay plan, first proposed in 2018, ties Musk’s compensation to Tesla’s performance, with specific milestones set for market capitalization and revenue targets. This unique structure, if fully realized through stock awards, could potentially make Elon Musk the first trillionaire, as highlighted by the New York Times. The stage for this monumental decision was set earlier in November, with shareholders preparing to vote on Musk’s pay package, which is directly tied to Tesla’s performance.
Details of the Shareholder Vote
Despite opposition from some investor groups, Tesla shareholders voted in favor of Musk’s $1 trillion pay package. Prior to the vote, CNBC had predicted that Musk was likely to prevail. This prediction was confirmed when multiple outlets, including Cryptopolitan, reported the shareholders’ decision to approve the package.
Criticisms of Musk as “Part-Time CEO”
Despite the vote’s outcome, criticisms of Musk’s divided attention persist. Detractors argue that Musk’s involvement in other ventures, such as SpaceX and xAI, dilutes his focus on Tesla, leading to the label of “part-time CEO.” Ars Technica detailed these criticisms, highlighting concerns over whether Musk’s divided attention justifies the scale of the $1 trillion compensation.
Potential Path to Trillionaire Status
Under the approved plan, Musk could accumulate wealth exceeding $1 trillion through escalating stock options based on Tesla’s growth. The New York Times explored how this pay structure positions Musk as the potential first trillionaire. However, the package’s milestone-based vesting would require Tesla to hit ambitious targets in revenue and market cap.
Market and Investor Reactions
Leading up to the vote, Tesla’s stock showed volatility, as discussed by Seeking Alpha. Post-approval reactions varied, with some investors praising the alignment of Musk’s incentives with the company’s success. The broader Wall Street coverage emphasized the high stakes of the shareholder decision on Musk’s pay.
Implications for Tesla’s Future
The vote reinforces Musk’s control over Tesla’s strategy, potentially accelerating innovations in electric vehicles and autonomy. The approval of the $1 trillion package could influence executive compensation norms in the tech and automotive sectors. However, ongoing debates about CEO focus could resurface in future governance challenges for Tesla.
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