Jakarta, IDN Times – Tesla CEO Elon Musk has secured shareholder approval for a staggering pay package worth nearly US$1 trillion (approximately IDR 16,710 trillion) on Thursday, November 6, 2025. The monumental decision was ratified with a resounding 75 percent of votes and met with fervent applause at the company’s annual general meeting held in Austin, Texas.
Musk, currently recognized as the world’s wealthiest individual, is now tasked with significantly boosting Tesla’s market value over the next decade. If all ambitious targets are achieved, he stands to receive hundreds of millions of new shares, distributed in 12 tranches. This could elevate his ownership from 13 percent to a formidable 25 percent, adding over 423 million shares and significantly consolidating his voting power within the company.
This colossal compensation package intricately links Tesla’s market capitalization surge to the achievement of rigorous operational performance metrics. Each stage of the reward is contingent upon reaching predetermined financial and production targets, ensuring Musk’s incentives are directly aligned with the company’s growth and success.
1. Tesla’s Market Cap Targets Soar to IDR 142,009 Trillion
According to CNBC, the initial stage of the package is activated when Tesla’s market value breaches US$2 trillion (approximately IDR 33,414 trillion), a substantial leap from its current valuation of around US$1.54 trillion (approximately IDR 25,728 trillion). This sets a demanding benchmark from the outset of the new compensation plan.
The subsequent nine stages necessitate incremental increases of US$500 billion each (approximately IDR 8,353 trillion), progressively pushing the company’s valuation towards a remarkable US$6.5 trillion (approximately IDR 108,595 trillion). The final two stages are even more ambitious, demanding a US$1 trillion jump each, culminating in a colossal total market capitalization of US$8.5 trillion (approximately IDR 142,009 trillion) for the full package to be awarded.
Beyond market capitalization, Tesla’s profit targets range from an annual US$50 billion (approximately IDR 835.3 trillion) to an ultimate peak of US$400 billion (approximately IDR 6,682 trillion). Furthermore, other groundbreaking targets include delivering 20 million vehicles, securing 10 million active subscribers for its Full Self-Driving (FSD) service, producing 1 million Optimus humanoid robots, and deploying 1 million commercially operational robotaxis. These goals underscore a vision that extends far beyond traditional automotive manufacturing.
However, the plan remains vague on whether FSD customers will be required to purchase a subscription or if access via free trials will be an option. The specific details of the subscription scheme have yet to be publicly elucidated by the company, leaving some questions unanswered.
2. Musk Celebrates Decision with Enthusiastic On-Stage Performance
Following the announcement of the vote results, Musk took to the stage, exuberantly dancing amidst a chorus of cheers for his name. The atmosphere was electrifying, reflecting the significance of the shareholder’s decision.
“What we are about to embark on is not just a new chapter of Tesla’s future, but an entire new book,” he declared to thousands of attendees, as reported by BBC. His words painted a vivid picture of the revolutionary trajectory he envisions for the company.
Musk also asserted that Tesla’s shareholder meetings are significantly more engaging than similar events at other corporations. He then steered the discussion towards the Optimus robot project, boldly claiming it possesses the potential to eradicate poverty and deliver exceptional medical services to all humanity, showcasing his characteristic optimism for future technologies.
He further added that the robot could even be utilized for crime prevention by tracking and apprehending perpetrators. Nevertheless, a commercial version of Optimus has yet to be released, and Tesla has not announced any official production timeline, indicating these grand visions are still in their developmental stages.
3. Criticism Mounts Over the Fantastic Value of the Pay Package
The enormous value of this compensation package has drawn widespread scrutiny and critical attention. However, Tesla’s board of directors justified the approval by suggesting that Musk might potentially depart the company if the package were rejected. The board vehemently insisted that Tesla could not afford to lose a figure deemed indispensable to its unparalleled success and future trajectory.
Several influential investors voiced strong opposition to the decision, including Norway’s sovereign wealth fund, recognized as the world’s largest, and CalPERS, the biggest public pension fund in the United States. Further rejections came from two prominent proxy advisory firms, Glass Lewis and ISS, highlighting the broad-based concern among institutional stakeholders.
Previously, Tesla shareholders had twice approved an older pay package valued at tens of billions of US dollars, rewarding Musk for achieving a tenfold increase in the company’s market value. However, that agreement was later invalidated by a Delaware judge, citing the board’s perceived undue closeness to Musk. Following this legal setback, Tesla strategically moved its legal domicile to Texas, and now the Delaware Supreme Court is conducting a review of the original ruling, adding another layer of complexity to Musk’s compensation saga.
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Summary
Tesla shareholders have approved CEO Elon Musk’s nearly US$1 trillion compensation package with 75 percent of votes at the company’s annual meeting in Austin, Texas. This monumental pay deal is contingent upon Musk significantly boosting Tesla’s market value to US$8.5 trillion and achieving rigorous operational targets over the next decade. If these ambitious goals are met, Musk’s ownership in the company could increase from 13 percent to 25 percent.
The targets include delivering 20 million vehicles, securing 10 million Full Self-Driving subscribers, and producing 1 million Optimus humanoid robots. Despite Musk’s enthusiastic celebration of the decision, the package has drawn widespread criticism from major investors, though Tesla’s board justified it as essential to retain him. This approval follows an earlier, similar pay package that was invalidated by a Delaware judge due to concerns about the board’s independence.